Raphael Bostic, President of Atlanta Federal Reserve said that Thursday’s interest rate rise will be later than expected in 2022 because he anticipates a rising economy and persistent inflation pressures.

CNBC was informed by a central bank official that he had “penciled” for a rate rise in the “late third or maybe early fourth quarters of 2022. This puts him in the camp of Fed officials more inclined to be hawkish, who now seem about on par with those concerned about whether or not policy will be tightened next year.

In a “Closing Bell”, interview, he stated that “our experience with the pandemic really has frankly surprised to be the upside.” “I have really adjusted my expectations going forward.”

Bostic sees a bright future despite some of the recent economic data that shows a slowdown. the Atlanta Fed’s own GDP trackerEstimates GDP growth at 0.5% for the third quarter.

According to him, he believes that the Covid-19-related barriers will be removed and allow for greater growth. Inflation is a challenge that he does not see disappearing anytime soon.

Others have called this current wave of inflation “flooding”. which is running at a 30-year highThe transitory. Bostic refutes this notion. Bostic said that prices are increasing across the economy, and this will impact growth and policies.

Bostic indicated that the disruptions would last for longer than anticipated. While the labor market is not likely to return to equilibrium in the time we expected, we know that demand will remain strong and this combination could lead to increased inflationary pressures. It’s clearer every day that this will continue into 2022, the more I speak to people.

Since the outbreak of the pandemic, the Fed has kept its short-term benchmark interest rate at or near zero. Recent weeks have seen officials indicate they are ready to start taperingThe monthly asset purchases could start in November. Bostic favoured this decision.

Bostic also stated that he would closely monitor inflation trends. Bostic stated that he would encourage his colleagues to “take some concrete steps” to stop the Fed from putting on the brakes in order to limit prices.

Bostic is also discussed a major announcement the Fed made ThursdayIn which the Fed stated it will prohibit high-ranking officials from trading individual securities and bonds or playing on the derivatives market. Two Fed regional presidents were forced to resign after trading revelations.

Bostic indicated that he is happy with the new arrangement.

I think that this step is necessary to acknowledge the changes in our circumstances. “The market is changing and we have to adjust our approach in order to keep the public trust,” he stated.