7/11, 7:07 PM (Source: TeleTrader)
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Bostic: Fed very close to 2% inflation target

Head of the Federal Reserve Bank of Atlanta Raphael Bostic stated on Thursday said that the United States economy is closing towards its 2% inflation target and that it is nearing, not deviating from it. Speaking at the FY2020 State Fiscal Conference, Bostic explained that the recent low readings on inflation were "noisy" and that the Atlanta Fed started using multiple surveys, including the data made by professional forecasters and business, and compare them in order to assess the inflation more precisely.

"The best measures suggest [inflation] is close to the target and market expectations are not diverging from the target," Bostic said, adding that he and other Fed Board members were engaging in a "systematic review" of monetary framework in order to address what some would perceive as "persistent miss" of the regulators.

Bostic also said that these inflation expectations should be eliminated in order to better the public's trust into the central bank mission and conduct, explaining that the confidence in the Fed's competences would be crucial in its future mission "in case [the Fed] decides to lower the interest rates to zero or near zero" or when "the central bank delivers on what it wants to deliver."

Breaking the News / MA