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2/13, 3:49 PM (Source: TeleTrader)
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Fed's Bostic: Trade uncertainties big risk for US

Head of the Federal Reserve Bank of Atlanta Raphael Bostic stated on Wednesday that the trade uncertainties, including the ongoing negotiations with China and the revision of the original the North American Free Trade Agreement (NAFTA), pose a big risk for the United States' economy. During his speech in Ireland, the US central banker commented on the Chinese economy as well, noting that the slowdown in the second-biggest economy amid the ongoing trade war was significant. He added that the European Union is also experiencing a significant slowdown. Despite downplaying the negative effects of a government shutdown on numbers, he noted that it remains a risk for the American economy.

Bostic continued, stressing that it is time the Fed adjusts its policy to a more neutral range, adding that he believes the central bank should continue with its monetary policy without any significant changes. However, he warned that implementing changes too fast could have a negative effect on the domestic economy. Atlanta Fed's chief said that, in his opinion, there should be one more interest rate hike in 2019, noting that 2.5% growth is consistent with another rate increase.

Breaking the News / VK