Breaking News
Investing Pro 0
Cyber Monday Extended SALE: Up to 60% OFF InvestingPro+ CLAIM OFFER

Fed rate hike could be half-point if needed, says Raphael Bostic - FT

Economy Jan 29, 2022 05:05PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. FILE PHOTO: Federal Reserve Bank of Atlanta President Raphael Bostic participates in a panel discussion at the American Economic Association/Allied Social Science Association (ASSA) 2019 meeting in Atlanta, Georgia, U.S., January 4, 2019. REUTERS/Christop

(Reuters) - The Federal Reserve could supersize an interest rate increase to half a percentage point if inflation remains stubbornly high, Atlanta Fed President Raphael Bostic told the Financial Times in an interview.

Bostic stuck to his call for three quarter-point interest rate increases in 2022, with the first in March, but a more aggressive approach was possible if warranted by economic data, he told the newspaper on Friday.

"Every option is on the table for every meeting," Bostic told FT. "If the data say that things have evolved in a way that a 50 basis point move is required or [would] be appropriate, then I'm going to lean into that . . . . If moving in successive meetings makes sense, I'll be comfortable with that."

The Fed clearly telegraphed a March interest rate hike after its meeting last week. Fed funds futures, which track short-term rate expectations, are pricing nearly five rate increases of 25 basis points each this year, up from four expected hikes before that.

Fed rate hike could be half-point if needed, says Raphael Bostic - FT
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:  

  •            Enrich the conversation, don’t trash it.

  •           Stay focused and on track. Only post material that’s relevant to the topic being discussed. 

  •           Be respectful. Even negative opinions can be framed positively and diplomatically. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Comments (10)
Vi Ma
Vi Ma Jan 30, 2022 11:58PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All Talk No Action. The Fed Chair categorically mentioned in Dec that he is not fastening taper any further then March coz the mkts react negatively to it !! What more does the country n press need to hear from fed that mkts are as primary a concern for fed as employments & inflation :)
Michael Angelo
Michael Angelo Jan 30, 2022 8:47PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The new NEWSPEAK. "transitory" for "next"... trying to cool down expectations.
Gus McCrae
Gus McCrae Jan 30, 2022 4:45PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
raise half point, reduce a quarter immediately after.
MuraliKrishna Brahmandam
MuraliKrishna Brahmandam Jan 29, 2022 8:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The US Federal reserve is solely responsible for the Ukraine situation. The US Fed may have to slam the break really hard to avoid the Ukraine invasion and to send Russian troops and US stocks back to their home bases
Trevor Roberts
LimitUp Jan 29, 2022 8:08PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
You took quite the leap
Alpha Omega
Alpha Omega Jan 29, 2022 7:35PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Bostic is right. Once Powell is officially reappointed the rates rise the next day.
Stephane Adam
Stephane Adam Jan 29, 2022 6:27PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
The fed balance sheet tightening worries me more than the rate hike especially if the fed does it at the same time, because real rates will remain negative.
Ralph Patrick
Ralph Patrick Jan 29, 2022 6:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Do the moon boys have enough free Xbox games and pizza yet? Is the market finally going to crash this week so they can go get real jobs? Or will the market keep running up so single moms can't afford basic nessecities while moon boys pamper themselves with gaming PCs? Sounds like a tough midterm issue. The majority of the voting base actually does not have a meaningful stock portfolio. Most of them would readily choose a crashing market over more inflation. Only gamblers and upper class really cling to market speculation for dear life.
Prakash J Chaudhari
Prakash J Chaudhari Jan 29, 2022 6:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Priority should be energy price control and supply chain -
Peter ONeill
Peter ONeill Jan 29, 2022 6:16PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
International wholesale energy markets are controlled by supply and demand - no such thing as price control (some countries have domestic caps but very hard to set and maintain). You can attempt to increase supply by applying pressure on OPEC, but they tell the market they already doing all they can (plus demand is even higher now with winter snaps). If Russia invades Ukraine everything goes out the window. Recent numbers by JP Morgan said if Russia invades Ukraine, Global Oil could go up to $150+  a barrel. The last time's Oil got to $140+ a barrel was the 1979 oil crisis and in 2008 just before the financial crisis hit (both times oil spiked above $140 - the stock market collapsed in the prevailing period)
Chad RicherThanYou
Chad RicherThanYou Jan 29, 2022 5:29PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
All talk no action
Alpha Omega
Alpha Omega Jan 29, 2022 5:22PM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
Every thing said is Talking Up The Dollar. That is the blood in the vains of the American economy.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Continue with Google
or
Sign up with Email