Rafael Bostic, Chairman of the Federal Reserve Board in Atlanta, expects the Fed to be able to raise interest rates in 2023. According to his speech in an interview with The Wall Street Journal, Bostic says that the Fed needs to see a sustained period of strong inflation in order to raise rates.
Bostic also expects the US economy to grow by 6% and that inflation will exceed the Fed’s target this year, adding that there is still some time before the Fed considers dialing back asset purchases.
The Federal Reserve is buying $120 billion in bonds every month, after an increase over the past year, to support markets after a major sell-off triggered by the spread of the coronavirus pandemic, which caused a liquidity freeze.
