Atlanta Fed head Raphael Bostic with an interview with the Wall St Journal
- Risks are more to the upside now (with regards to growth)
- More uncertainty on how 2019 is going to look like
- Tax cuts could raise growth without boosting inflation
- But federal spending increase is likely to boost demand
- Which in turn would put more pressure on inflation
- Could be that 2019 is going to be where more of the action is
The full transcript can be found here (may be gated).
Not as hawkish as his comments from a couple of days ago, but it sheds some light as to how much fiscal policy is weighing on the Fed's decision making at least. But it does look like this will be more of an issue later on than it will be right now.
Bostic also praised John Williams - who is reportedly the front-runner to take over from William Dudley as NY Fed chief - saying that the regional Fed in New York would be "lucky to have him".
