Make Kitco Your Homepage

Fed's Bostic sees gradual rate hikes to balance growth, inflation

Kitco News

MONTGOMERY, Ala., Nov 14 (Reuters) - The Federal Reserve should aim to raise interest rates gradually despite weak inflation readings in part because any spike in demand could push the U.S. economy beyond its sustainable levels, one of the newest Fed policymakers said on Tuesday.

Atlanta Fed President Raphael Bostic, who began the job mid-year, said overall economic activity has grown at "a reasonably solid pace" in recent months despite hurricanes that have hit his district.

"I think it will be appropriate for interest rates to rise gradually over the next couple of years," Bostic, who votes on policy next year, said at an economic forum in Montgomery, Alabama.

Noting that inflation has "softened" this year, he said: "While I'm still holding to the view that the recent weakness largely reflects idiosyncratic noise, I'll be watching the next few inflation reports closely for signs of a pickup."


(Reporting by Jonathan Spicer; Editing by Chizu Nomiyama; Editing by Chizu Nomiyama)

Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.

Precious Metal Charts

Follow Kitco News