Fed's Bostic favors a less drastic rate hike at the next meeting

On Saturday, the president of the Federal Reserve Bank of Atlanta, Rafael Bostic, noted that he was ready to speak out against rate hike of 0.75% at the next Fed meeting scheduled for December. He advocates slowing the pace of interest rate increases, with no more than 1 percentage point of hikes, to combat inflation in the United States.

Speaking on Saturday, Bostic noted that if the economy is in line with his forecasts, it would be reasonable to raise the rate by 75-100 basis points. This level will help hold the line on inflation for a certain period of time.

This will bring the rate to a range of 4.75-5%, which is slightly lower than the peak rate projected by investors. 

As reported by Bostic, given the inflationary surprises of last year, the interest rate may be set higher than his current view. Therefore, his forecasts for the rate may change.