{"id":78120,"date":"2023-01-09T22:39:00","date_gmt":"2023-01-09T18:39:00","guid":{"rendered":"https:\/\/noortrends.ae\/en\/?p=78120"},"modified":"2023-01-09T23:28:14","modified_gmt":"2023-01-09T19:28:14","slug":"feds-bostic-prefers-holding-rates-above-5-for-a-long-time","status":"publish","type":"post","link":"https:\/\/noortrends.ae\/en\/feds-bostic-prefers-holding-rates-above-5-for-a-long-time\/01\/09\/market-updates\/","title":{"rendered":"Fed\u2019s Bostic Prefers Holding Rates Above 5% For A Long Time"},"content":{"rendered":"\n<p>Atlanta Fed President Raphael Bostic said the central bank should raise interest rates above 5% by early in the second quarter and then go on hold for \u201ca long time.\u201d<br><br>Bostic said on Monday that it is &#8221;fair to say that the Fed is willing to overshoot&#8221;, mentioning the likelihood that services inflation will prove sticker than the Fed would want. Bostic does not see that wages are driving final goods prices.<br><br>The US Dollar was at a 7-month low, last down 0.83% at 103.05. The index, which measures the greenback against six major currencies, tumbled 1.15% on Friday as investors moved into riskier assets following a mixed labour market report and dismal US PMIs.<br>    <br><strong>Key Quotes<br><\/strong><br>Economy still has a &#8220;fair amount&#8221; of momentum, remains robust.<br>    <br>Right now economy can absorb Fed policy tightening.<br>    <br>Base case for 2023 is GDP growth of 1%, no recession.<br>    <br>Think inflation can fall to about 3% this year, though it will take time for the Fed&#8217;s policy change to play out.<br>    <br>If there is a contraction it is going to be shallow and short.<br>    <br>Repeats see rates rising to between 5 and 5.25%.<br>    <br>Broad consensus that the Fed policy is in a restrictive place, appropriate to be much more cautious in terms of calibrating more. movements<br>    <br>Getting back to a more normal cadence of policy movements will be &#8220;appropriate and important&#8221;.<br>    <br>Rates will have to stay high for &#8220;a long time&#8230;well into 2024&#8221;.<br>    <br>Fair to say that the Fed is willing to overshoot.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Atlanta Fed President Raphael Bostic said the central bank should raise interest rates above 5% by early in the second quarter and then go on hold for \u201ca long time.\u201dBostic said on Monday that it is &#8221;fair to say that the Fed is willing to overshoot&#8221;, mentioning the likelihood that services inflation will prove sticker &hellip;<\/p>\n","protected":false},"author":13,"featured_media":55407,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"_monsterinsights_skip_tracking":false,"_monsterinsights_sitenote_active":false,"_monsterinsights_sitenote_note":"","_monsterinsights_sitenote_category":0,"footnotes":""},"categories":[37,36],"tags":[6943,6885,8143],"class_list":["post-78120","post","type-post","status-publish","format-standard","has-post-thumbnail","","category-forex-markets","category-market-updates","tag-bostic","tag-fed","tag-interest-rate-hikes"],"_links":{"self":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/78120","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/users\/13"}],"replies":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/comments?post=78120"}],"version-history":[{"count":3,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/78120\/revisions"}],"predecessor-version":[{"id":78127,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/posts\/78120\/revisions\/78127"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media\/55407"}],"wp:attachment":[{"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/media?parent=78120"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/categories?post=78120"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/noortrends.ae\/en\/wp-json\/wp\/v2\/tags?post=78120"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}