In an interview with The Atlanta Fed, Raphael Bostic stated that the Federal Reserve would not rule out increasing interest rates by half a percentage instead of the usual quarter-point move. If inflation continues to be high Raphael Bostic, Atlanta Fed President Raphael Bostic indicated that the Federal Reserve will consider raising them by half a percent. Financial Times.

Bostic reiterated his demand for three quarter point interest rate hikes in 2022. This would be in addition to what he stated in March. However, he did admit that it was possible to take a more aggressive stance if the data change.

If the data indicate that things have changed in such a manner that a move of 50 basis points is necessary or [would] be appropriate, then I’m going to lean into that . . . Bostic indicated that it was possible to move in succession meetings if this makes sense.

Bostic indicated that he would monitor the Financial Times for signs of a slowdown in monthly consumer price increases and whether wage growth is meaningfully increasing prices.

According to fed funds futures, market participants now anticipate that the Fed will raise rates at least five more times in the coming year after Jerome Powell’s aggressive comments about fighting inflation. This is up from the previous four.

While it’s generally believed that the hikes would be in quarter point increments, Bill Ackman and others in the market believe otherwise. half-point hike is neededThe Fed has been slow to reduce inflation. In May 2000, the Fed raised its rates half a point.

According to the report, Bostic refuted the notion that Fed will raise rates too aggressively.

Our policy path does not include a stricture path. He said that it was a more accommodative route. The three are possible if we follow the above steps. [interest rate increases]That’s what I am thinking, but that will still put our policy in an extremely accommodating space.”

Read the full Financial Times report here.