Washington, May 9 (Archyde.com) – U.S. Federal Reserve Bank of Atlanta Governor Robert Bostic said on Tuesday that the time for U.S. inflation to fall may be approaching.9 (Archyde.com) – U.S. inflation may be falling, but U.S. inflation may be falling, and U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be falling, U.S. inflation may be fallingOn the other hand, he said that he is inclined to accelerate the pace of rate hikes this year.
In an interview with CNBC, he said: “I am very hopeful that the (inflation) rate will begin to fall.There is also evidence that is imminent.”This year will continue to start from 3 month 0.The Bank believes that a 25 percentage point rate hike by 3 percentage points is appropriate, but “I am somewhat inclined to a 4-point rate hike.”As we take the first step, we have to see how the economy will react.”
The U.S. Consumer Price Index (CPI), which will be released on the 10th of March 1, is expected to rise more than 7 percent year-on-year.The Fed is under pressure to raise interest rates and accelerate the contraction of assets it holds.
Bostic said he wanted to focus more on whether monthly fluctuations would continue to moderate rather than whether the overall inflation rate was at a high level.
He said prices had been boosted by factors such as problems in the supply network associated with the resumption of economic activity following the spread of the new coronavirus.If the month-on-month fluctuations were to moderate, they would indicate that these factors were going to be resolved.”In order for inflation to return to the target of 2 percent, the month-on-month fluctuations would need to begin to shrink.”
“Since inflation has not deteriorated over the last few months, we expect to see a moderate decline in the spring and summer months,” he said.That gives us a certain sense of security that we are moving in the right direction.”
The Fed is expected to start raising rates at the Federal Open Market Committee (FOMC) on 3.15-16, but there is uncertainty about how aggressive the Fed needs to be and whether supply chains and labor markets are likely to recover to levels before the new Corona pandemic (global pandemic).
“The U.S. economy is going through a stop sign,” said Ethan Harris, head of Global Economics at Bank of America, given the prospect that the U.S. unemployment rate will rebound to 3 percent this year.Harris pointed out that the Fed is not prepared to admit that it is behind in suppressing inflation.The Fed is expected to raise interest rates at the FOMC each time this year, with a total of 7 rate hikes.
There have also been recent signs of improvement in the supply chain.Stocks are being restructured in many sectors, and executives at shipping giant AP Moller Maersk said on June 9 that global shipping conditions are expected to “normalize” in the second half of this year.