US economy requires neutral policy – Atlanta Fed president

Atlanta Fed Governor Raphael Bostic
Raphael Bostic
US Department of Housing and Urban Development

An economy close to full employment demands a neutral policy stance, said Raphael Bostic, president of the Federal Reserve Bank of Atlanta, in a speech on November 14.

Bostic considered that with the unemployment rate hovering at 4.1%, a sudden increase in demand could overheat the economy and endanger the recovery: “This would put pressure on labour costs, as businesses would have to compete more aggressively for an increasingly limited pool of available workers.”

Based on economic data

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