Feds Bostic: Inflation to likely run above 2%

Feds Bostic was speaking in Jacksonville Florida

Prepared remarks as follows:

• Inflation likely to run a bit above 2% for a while.
• Concerns over trade war overshadowing tax cuts.
• Overshooting 2% inflation is not a problem.
• Economy on track and fed close to both its targets.
• Trade policy most obvious risk to economy at the moment.
• Uncertainty over possible tariffs may be undercutting business investment, offsetting the potential impact of corporate tax cuts.
• Businesses appear bullish on economy, except the possibility of a trade war.
• No clear sign consumer spending proceeds of tax cuts: concerning also that business investment has not increased faster.
• Recent business surveys, particularly in firms possibly subject to tabs, indicate possible upward inflation pressure with unit costs rising.
• Labor market tight but not overheating.

About Raphael W. Bostic

Raphael W. Bostic is an American economist and academic, who became the 15th President and CEO of the Federal Reserve Bank of Atlanta on June 5, 2017. In 2018, he serves as a voting member of the Federal Open Market Committee.