sunshineprofits.com / ARKADIUSZ SIEROŃ / NOVEMBER 15, 2017
On Tuesday, Bostic gave a speech in Montgomery. What does it mean for the gold market?
Yesterday, Raphael Bostic delivered a speech entitled “A View of the U.S. Economy and Rural and Urban Labor Market Dynamics” in Montgomery, Alabama. In case you are wondering who Raphael Bostic is, we are here to satisfy your curiosity. He is the new Atlanta Fed President. Bostic began the job mid-year, replacing Dennis Lockhart in the position. We did not analyze his stance earlier, as he is a non-voting member in 2017. But this will change in 2018, so let’s analyze Bostic’s views on monetary policy.
In Tuesday’s speech he pointed out that the U.S. economy was nearing full employment. Hence, he expressed an opinion that inflation would rebound. Therefore, “it will be appropriate for interest rates to rise gradually over the next couple of years.”
So is Bostic a hawk? Well, not necessarily. In a September speech in Atlanta, he said : “my inclination is that the stance of monetary policy is not currently too accommodative”. He also often mentions labor force disparities in his speeches.
So maybe he is a dove? It’s not the case either. We consider him a neutral, as he supports gradual tightening, just as Yellen or Powell.
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