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5/24, 7:06 PM (Source: TeleTrader)
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Fed's Bostic: Tamping down inflation top concern

Federal Reserve Bank of Atlanta President Raphael Bostic noted on Tuesday that the Federal Reserve's top concern is "tamping down" inflation as rising prices create an imbalance between demand and supply for goods and services in the country.

According to Bostic, the Atlanta Fed reported that the personal consumption expenditures price index for April increased to 6.6%, explaining the goal is to return inflation to the objective of 2%. Rebalancing the labor market by boosting supply, lowering demand, or both, stated Bostic, is critical. Although no "clear signs of a wage-price spiral" have been detected in data, some businesses reported compensation increases due to labor supply challenges caused by COVID-19 and inflation, stated the Fed's President.

Bostic stated that the global pandemic and the Ukrainian conflict, have obscured the economic outlook on "every front," underlining that the uncertainties must be addressed by monetary policymakers through tightening policies.

Baha Breaking News (BBN) / AB