Speaking in Baton Rouge Louisiana

Comments from Fed's Bostic are out a little early. He says:

  • possible headwinds not throwing economy or Fed off track
  • headwinds include trade policy, market volatility
  • little reason to keep Fed's foot on the gas pedal
  • economy strong doesn't need support from the Fed policy
  • must balance risk of hiking too fast versus going to slow
  • inflation remains stable around Fed's 2% target
  • risks tilted to the upside, list 2018 – 19 GDP forecasts
  • Fed is still a few rate hikes away from neutral
  • tailwinds include tax reform, fiscal stimulus
  • backs gradually raising rates to neutral level
  • important that the Fed guards against running an overly high pressure economy to avoid need for more muscular Fed response
  • unless data surprised to downside, Fed should continue gradual rate increases at least a few more times
  • household finances in good shape, firms so far resilient to tray and tariff risks, though beginning to cite cost increase concerns

Overall the comments from Bostic who tends to be more on the dovish side are upbeat. Steady as she goes Fed policy.