Bostic: Inflation is expected to gradually drop to 2% this year, but the Fed should still proceed with caution.

On January 8th, Jinshi data reported that the Federal Reserve’s Bosstic said that due to uneven progress in dropping inflation, officials should be cautious in their decisions and prefer to keep the Intrerest Rate high. Bosstic also said in a podcast recorded on December 9th and released on Tuesday that he expected inflation to continue to gradually drop to the Fed’s 2% target this year. He said he expected price pressures to ease, although at times it may seem that progress is stalling, or inflation is becoming more aggressive. “I want to make sure we get the right signals and make sure our policies are calibrated based on the right signals. If we have to make mistakes, I would rather make mistakes in the right direction,” Bosstic said in the podcast. “I hope to ensure - of course, ensure - that inflation reaches 2%, which means we may have to keep the Intrerest Rate at a higher level than people expect.”