Atlanta Fed President Raphael Bostic said Thursday that he was not concerned about the failure of the central bank to achieve its 2% annual inflation target. While inflation has been stubbornly below the central bank’s target, “the best measures suggest it is close to target and not materially trending away from it,” Bostic said, in a speech to a Volcker Alliance conference, named for the former Fed chairman, in Atlanta. According to minutes of the Fed’s June meeting, released Wednesday, some Fed officials argued that an interest-rate cut would help get inflation back to target. “Many” Fed officials indicated they would back a policy easing if the economy continued to struggle. Bostic said he is going to go into the July Federal Open Market Committee meeting with an open mind. “But I do feel that with respect to both objectives of our dual mandate, we are in a good position,” he said. Bostic is not a voting member of the Fed’s interest-rate committee but will be in 2021.
Fed Chairman Jerome Powell says the Fed wants the expansion to continue ‘as long as possible’.