Fed’s Bostick says the US is not in a global recession

“I don’t think the country is in a recession“, he said Friday in an interview with NPR, although he said it is clear that many people are suffering under the current circumstances.”For this reason, we really need to address the high levels of inflation and return this economy to a more stable and sustainable state.“.

The president of the Atlanta Fed was the first central bank to speak publicly since the Fed raised interest rates by 75 basis points for the second month in a row on Wednesday, as it carried out the most aggressive consecutive hikes in more than a generation to tackle rampant inflation.

“I am convinced that we will have to do more regarding changes in interest rates. But exactly how far and on what course will depend on how the economy performs in the coming weeks and months.Bostick, who does not vote in politics this year, said. “We will get a lot of data in the next couple of months before our next meeting, and that will give us a good indication of the right course of action.“.

Chairman Jerome Powell told reporters after the meeting that he expects continued increases and that another unusually large increase may be appropriate, although that increase will slow at some point in the future. The next meeting of the Federal Reserve will be held on September 20-21.

Powell also dismissed suggestions that the US economy was already in a recession, citing continued job creation and a low unemployment rate, which reached 3.6% in June.

“One of the things that encouraged me is how strong job growth is, which suggests to me that there is a lot of momentum in the economy,” Bostic said. Regarding stagnation, “My team and I don’t see it on the field now.”

“There is a lot of demand out there.“, he added.

Bostick said he will be watching to see if Americans’ fears about a recession are changing people’s economic behavior.”But we don’t see that now“.

Thursday’s data showed that GDP contracted on an annual basis in the second quarter after contracting in the first three months of the year. Economists sometimes consider a two-quarter GDP contraction to be a basic rule of thumb for a recession.

The National Bureau of Economic Research’s Business Cycle Dating Committee, the official arbiter of US economic recessions, does not accept this view. Instead, the group of eight elite academic economists examines half a dozen monthly economic reports to find out.A significant drop in economic activity spreads throughout the economy and lasts more than a few months.”