“Today, I would be comfortable with a 50 or a 25 increase, and if I start to hear signs that the labor market is starting to ease a bit in terms of its tightness, then I might lean more towards a 25 basis point hike.Bostic said Friday during an interview with CNBC.
Your top rate projection of 5% to 5.25% is “the range that I think we need to move to if the economy proceeds as I expect, which is a continued gradual slowdown.”
Bostic is not a voter on the Fed’s rate-setting panel this year.
Fed officials raised interest rates by a half point in December, extending their aggressive tightening campaign and raising their benchmark rate target to a target range of 4.25% to 4.5%.
The move followed four larger increases of 75 basis points. Policymakers say their next rate move will be determined by economic data, including inflation and employment reports. Officials will meet on January 31 and February 1.
Nonfarm payrolls rose 223,000 jobs in December, capping a near-record year of job growth, according to a Labor Department report released Friday. The advance came after the revised increase of 256,000 jobs in November.
Median hourly earnings in the United States increased 0.3% in December from the prior month and 4.6% from December 2021, both less than expected, after a downward revision to November.
Source: Gestion
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