Atlanta Fed President Raphael Bostic reaffirmed the neutral rate is slightly below the current policy level and warned rate hikes could return if inflation pressures grow.
On Feb. 20, Atlanta Federal Reserve President Raphael Bostic stated that the neutral interest rate may be 0.25 to 0.5 percentage points lower than the current policy rate. He emphasized that if inflation accelerates, the Fed might reconsider rate hikes. His comments underscore the central bank’s vigilance in balancing economic growth with price stability.