Fed must stay 'vigilant' to keep inflation going in right direction: Official

Raphael Bostic says soft landing within reach

By Ovunc Kutlu

ISTANBUL (AA) - Atlanta Fed President Raphael Bostic said Tuesday the US Federal Reserve must stay "vigilant" to keep inflation going in the right direction.

"Uncertainty and risks mean that the FOMC must stay vigilant to ensure that inflation does not reverse its trajectory," Bostic said in a statement. "Though momentum is in the right direction, it's too early to claim victory in our fight. Higher prices have inflicted hardship on many American households. That must not happen again."

Bostic noted that the Fed avoided widespread unemployment and slower economic growth, and added that a soft landing is within reach.

"Wringing inflation out of the economy is hard work. But this is the work these times require," he said.

The Fed made 11 rate hikes since March 2022 to tame record inflation but the moves also risked pushing the US economy into a recession.

Chair Jerome Powell said last month he believes it is possible to achieve a "soft landing" -- a situation where a central bank raises interest rates too much and too high that leads to an economic slowdown but avoids a recession.


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