9/28, 4:35 PM (Source: TeleTrader)
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Fed's Bostic: Baseline is 75 bp in Nov, 50 bp in Dec

Federal Reserve Bank of Atlanta President and Chief Executive Officer Raphael Bostic revealed on Wednesday that the baseline scenario right now includes the Fed increasing the federal funds rate by 0.75 percentage points in November and by 0.5 percentage points in the month after that.

The Fed should be expected to move to a "moderately restrictive" stance due to a lack of progress on the inflation front, he stated at a Fed-hosted event in Atlanta. This would mean that the main interest rate will reach between 4.25% and 4.5% by the end of 2022, Bostic explained.

He also warned about uncertainty stemming from geopolitical developments, but added that a recession in the United States is not a "foregone conclusion" as the unemployment rate could increase only to 4.1%.

Baha Breaking News (BBN) / MS