Fed's Bostic sees two more interest-rate hikes this year

KNOXVILLE, Tenn. (Reuters) - The Federal Reserve should probably raise rates two more times this year as it lifts rates toward a neutral rate, Atlanta Federal Reserve Bank President Raphael Bostic said Friday, but added that once there it should pause to take stock of the economy.

“Once we get to neutral I think we should step back and see how the economy is performing,” Bostic told reporters after a speech in Knoxville, adding that if the economy appears to be overheating, more tightening could be in order. At the moment, he said, there are no signs of labor market overheating, and he “totally” agrees with Fed Chair Jerome Powell’s view that the U.S. is not on the cusp of surging inflation.

Reporting by Ann Saphir; Editing by Chizu Nomiyama