Atlanta Fed’s Bostic ‘optimistic’ economy headed ‘in the right direction’

(The Center Square) — The head of the Federal Reserve Bank of Atlanta remains “quite optimistic that things are heading in the right direction.”

In a video message posted Thursday alongside a longer-form piece, Raphael Bostic, president and chief executive of the Federal Reserve Bank of Atlanta, said that after the inflation rate declined rapidly in the second half of 2023, it seemed to stall early this year.

“But information gleaned from data, Atlanta fed surveys and business contacts offers subtle signs of hope,” Bostic said. “They support my view that our restrictive policy stance is succeeding in gradually slowing economic activity and increasingly bringing demand and supply into better balance.

“In addition, the most recent data on inflation has been consistent with my expectation that the path of inflation toward the Federal Open Market Committee’s goal of 2% was always going to be bumpy,” Bostic added.

Recently released economic data revealed that American consumers’ confidence decreased in June. Additionally, federal inflation data released earlier this month revealed that while inflation slowed slightly, the cost of some goods and services continued to climb.

In his longer-form piece, Bostic urged patience.

“I believe inflation is likely to continue its fall, albeit quite slowly, toward our inflation target,” Bostic said in the video message. “The labor market — job creation, in particular — has continued to be strong, and there are signs that this can continue. I still believe that being patient and vigilant will be the best approach to policy making over the next several months.”