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Economy may respond quickly to Fed rate increases -Breaking

by Mike Robinson

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© Reuters. FILE PHOTO – Raphael Bostic, President of Federal Reserve Bank of Atlanta participates in a panel discussion during the American Economic Association/Allied Social Science Association 2019 meeting, Atlanta, Georgia (USA), January 4, 2019. REUTERS/Christop

ATLANTA, Ga (Reuters] – Financial markets’ quick reaction to tighter monetary conditions offers hope for other economic sectors, Raphael Bostic of Atlanta Federal Reserve said on Monday.

Bostic explained that higher interest rates could lead to faster economic response, which in turn can help curb inflation and demand.

“We must keep our eyes on the matter…This really is a dual issue.” According to the Fed, the Fed should be interpreted to determine if rate hikes will occur at a faster or slower pace depending on the economic response.

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