Fed's Bostic backs gradual rate hike path

11/14/17 01:06 PM EST

The U.S. central bank should continue to raise interest rates gradually because the current policy stance remains "very accommodating rather than neutral," said Raphael Bostic, the president of the Atlanta Fed, on Tuesday. Just how gradual that pace should be will depend on the strength of incoming economic data and what it implies for the outlook, Bostic said in a speech to Auburn University's branch in Montgomery, Ala. Bostic, who joined the Atlanta Fed in June, will be a voting member of the Fed's interest-rate committee in 2018. Bostic said he is still holding to the view that recent weakness in inflation "reflects idiosyncratic noise" but said he would be watching the next few inflation reports for signs of a pickup.

-Greg Robb; 415-439-6400; AskNewswires@dowjones.com

 

(END) Dow Jones Newswires

11-14-17 1306ET

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