Bostic: Inflation up to 2.3% 'would be fine' as long as it is stable

FILE PHOTO: Raphael Bostic, President of the Federal Reserve Bank of Atlanta walks into the three-day "Challenges for Monetary Policy" conference in Jackson Hole, Wyoming, U.S., August 23, 2019. REUTERS/Jonathan Crosby

WASHINGTON (Reuters) - Atlanta Federal Reserve President Raphael Bostic said Friday he would be paying closer attention to how fast inflation rises rather than its quarter to quarter level in implementing a new Fed approach that seeks to push inflation above the 2% target in order to ensure the target is met on average over time.

The Fed this week began putting more specific language around that strategy, but it will be interpreted differently by each policymaker. For his part Bostic said if inflation went up to 2.3% but appeared stable “that would be fine...By contrast if we were at 2.2 and the next quarter at 2.4 and then at 2.6 that trajectory would give me concern” and perhaps require efforts to cool the economy.

Reporting by Howard Schneider