Atlanta Fed President Supports Base Rate Hike Next Year

Raphael Bostic, President of the Federal Reserve Bank of Atlanta [Photo by Reuters]

[Asia Economy Reporter Byunghee Park] Raphael Bostic, President of the Federal Reserve Bank of Atlanta, expressed support for a rate hike next year, Bloomberg reported on the 23rd (local time). President Bostic said the economy is recovering faster than expected and that the timing of the rate hike should be moved up.

In a speech at the Russell Innovation Center that day, he said, "Considering the remarkable rebound trend confirmed by recent economic indicators, the Federal Reserve (Fed) should move the timing of the first rate hike to the end of 2020." He added that he expects two more rate hikes in 2023.

Bostic stated that he expects the U.S. economic growth rate to reach 7% this year and inflation to be 3.4%.

Robert Kaplan, President of the Federal Reserve Bank of Dallas, also said in an interview with Bloomberg News that he expects a rate hike next year. President Kaplan predicted that inflation rates this year and next will exceed the Fed's monetary policy target of 2%, and the unemployment rate will fall below 4%, leading to a rate hike next year. He forecasted inflation rates of 3.4% this year and 2.4% next year.