Fed's Bostic: Strong data may make a case for another 75 bps rate hike

• Inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is a big problem
• At this point, I'd toss a coin between 50 bps and 75 bps
• But if data remains strong and inflation doesn't soften, it may make a case for another 75 bps
• Some weakening in the economy is to be expected
• Fed needs to really make sure inflation is well on its way to 2% before taking steps to increase accommodative policy stance
• Full interview (may be gated)

The door for a 75 bps rate hike remains open and we'll have to get through a few hurdles to settle the debate. The first will be Fed chair Powell's speech tomorrow but in what is largely a data-driven market at the moment, the US jobs report on 2 September and US CPI data on 13 September will be the next two key releases to watch out for.