Fed official Bostic: Inflation is expected to fall, but the Fed needs to be cautious about rate cuts

Raphael Bostic, president of the Federal Reserve Bank of Atlanta, said in a podcast released on January 7 local time that given the uneven progress in fighting inflation, policymakers should remain cautious and would rather keep interest rates at a higher level to achieve the goal of price stability.

Bostic said his expectation is that inflation will continue to gradually decline this year and is expected to reach the Fed's 2% target. Although progress sometimes seems to be stagnant or prices are rising faster, inflationary pressures will subside.

Bostic said, "Given the volatility of inflation indicators, I think policymakers should remain more cautious."