Fed's Bostic: Labor market is not weak, premature easing is dangerous

BlockBeats news, on September 4, Atlanta Fed President Bostic said that the Fed's two goals - stable prices and full employment - have been balanced for the first time since 2021, but he added that he is "not ready" to declare victory over inflation.

Bostic said in a paper released by the Atlanta Fed on Wednesday, "Although inflation has fallen sharply, risks to achieving our price stability goals remain. We must remain vigilant to ensure that these risks continue to subside. History tells us that premature easing of monetary policy is a dangerous strategy that will cause inflation to return and keep it in the economy for months or even years."

Bostic believes that if the Fed waits until inflation fully falls back to 2% before easing policy, there will be certain risks in the labor market. He sees that the current job market "is loosening, but it remains stable overall. The labor market continues to be weak, but not weak." (Jinshi)