Federal Reserve

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Raphael Bostic, president of the Atlanta Fed, suggested that the Federal Reserve increase the top end of its target interest rate range to 5.25%.

The Fed increased its benchmark rate's top end by 50 basis points to 4.5% last month.

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On January 31–February 1, the Fed will meet once more to decide on monetary policy.

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When asked if the December jobs report supported a slower quarter-point hike or another 50 basis point advance, Bostic responded that it was somewhere in the centre.

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He indicated that his decision regarding the magnitude of the rate hike in February would therefore depend on newly released consumer spending data.

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The president of the Atlanta Fed stated that the central bank's regular and brisk rate increases during the previous year were successful in reducing inflation.

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He said he expects inflation to move down somewhere near 3% by the end of this year.

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According to Bostic, the economy is also slowing down gradually.

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Looking ahead to 2023, he predicted that the economy would grow at a 1% annual pace while the unemployment rate would marginally increase to 4%.

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The Labor Department earlier on Friday stated that the economy created a net 223,000 jobs in December and that the unemployment rate decreased to 3.5%.

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The December jobs statistics also revealed that pay growth slowed after accelerating in the previous month, which helped boost U.S. markets on Friday.

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