Fed’s Bostic Expects Full Employment in 2022

The President of the Federal Reserve Bank of Atlanta, Raphael Bostic, said on Thursday that the U.S. economy is in a battle to achieve recovery in the job market, expecting full employment next year.

Bostic also expects the Fed will raise interest rates by 2023.

As for inflation, he noted that as the economy is “growing pretty steadily and strongly through 2021. I think inflation will start to move.”

“It is going to take some time for employment to get back to pre-COVID levels, but we will be through much of that by the end of 2022 such that the conditions will have been met for us to advance the lift-off in our rates in 2023. That is still nearly two years from now so there’s a lot that’s got to happen.”