11/26/2021, 10:57 PM (Source: TeleTrader)
more TeleTrader news

Omicron slowdown should be weaker - Fed's Bostic

Federal Reserve Bank of Atlanta President and CEO Raphael Bostic said on Friday that an economic slowdown should be expected in the United States due to the Omicron coronavirus strain, but that its consequences should not be as serious "as what we've seen during Delta."

He also told Fox News he would be open to accelerating the gradual reduction of the central bank's asset purchasing program. In that scenario, Fed's bond-buying would end either in the early second quarter or late first trimester of next year, according to Bostic. Atlanta Fed is researching how a faster tapering process would impact inflation, he added, explaining that the pandemic has been behind the soaring consumer prices and pointing out that the central bank will maintain the situation under control.

Two interest rate hikes next year are "certainly possible" if such a course of action becomes necessary, he also noted.

Baha Breaking the News (BBN) / MS