Fed's Bostic continues to tout a gradual path of tightening
Fed's Bostic continues to tout a gradual path of tightening until getting to the neutral rate. It's his view that the Fed is stll "a few rate hikes away," but admitted there is some uncertainty around estimates of what that level is. The voting Fed dove upped his forecast on GDP for 2018 and 2019, supporting his policy views. There is little reason to keep the foot on the gas. The economy is doing well enough to stand on its own, and he added that risks are tilted to the upside. Tailwinds include tax reform and fiscal stimulus, while there are headwinds from trade policy and market volatility -- the latter is as close as he came in his prepared remarks regarding the markets. It looks as though for now he'll support another rate hike at the December 18, 19 FOMC.