Federal Reserve Bank of Atlanta President Raphael Bostic said he favors raising interest rates at Federal Open Market Committee’s March meeting. But he does seem undecided how much…(Bloomberg)
“One data point that I am looking at in particular is month-to-month change in inflation. To the extent we start to see that trend down, then I will be comfortable pretty much with a 25 basis-point move. If that continues to persist at elevated levels, or even moves in the other direction, then I am really going to have to look at a 50-basis-point move for March.”
Bostic also noted that it is going to be an active year for the FOMC, “Every meeting is live for us…As data comes in, we will have to make judgments about what happens at every stage of the way.”
NOTE: The CME Group Fed Watch tool had a 50 basis point hike probability at less that 7%, down from 88% a little less than three weeks ago.