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Atlanta Fed Chair Bostik predicts job losses, but says there's a really good chance of getting to 2% inflation without killing the economy

Atlanta Fed Chair Bostik predicts job losses, but says there’s a really good chance of getting to 2% inflation without killing the economy

President and CEO of the Federal Reserve Bank of Atlanta Rafael W. Bostic speaks at an event for the European Financial Forum in Dublin, Ireland, February 13, 2019.

CLUDAG KILQUEEN | Reuters

Atlanta Fed President Rafael Bostic appeared on CBS’ “Face The Nation” Sunday morning with a commitment to the 2% inflation target and a cautiously optimistic outlook on the way to get there.

The country’s central bank The target federal funds rate was raised by 75 basis points to between 3 and 3 1/4 Wednesday. Bostic believes the Fed can achieve its 2% inflation target without hurting the economy too hard.

“I think we will do everything we can at the Fed to avoid deep and deep pain.” “Face the Nation,” Bostick said.

TThe latest inflation report recorded 8.3%. over the past year. The Fed aims to ease demand in the economy so that prices can stabilize, but Some fear that the strict policies may lead to more economic turmoil.

Bostick realized that there could be job losses as a result of the Fed’s actions. However, compared to the Fed’s previous tightening, Bostick thinks “there’s a really good chance that if we have job losses it will be less than we’ve seen in other situations,” he said in “Face the Nation.”

Bostick sees “positive momentum” in the economy despite two consecutive quarters of negative GDP growth, an indicator some use to define a recession.

“We’re still creating a lot of jobs on a monthly basis. And so I actually think there’s some capacity for the economy to absorb our actions,” Bostick said, referring to “significant job growth” in his bank’s hometown of Atlanta. “I expect that as we move in and begin to control inflation more closely.”

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