Bostic: Inflation is expected to gradually fall to 2% this year, but the Federal Reserve should still be cautious

Mr. Bostic of the Federal Reserve said officials should be cautious in their decision-making, preferring to keep interest rates high given uneven progress in reducing inflation. In a podcast recorded on December 9 and released on Tuesday, Mr. Bostic also said he expected inflation to continue to gradually fall to the Fed's 2 per cent target this year. He said he expected price pressures to subside, although at times it might look like progress was stalling or inflation was becoming more aggressive. "I want to make sure we are getting the right signals and that our policies are calibrated to the right signals. If we have to be wrong, then I will be wrong on the good side," Mr. Bostic said in the podcast. " I want to make sure - of course - that inflation reaches 2%, which means we may have to keep the policy rate higher than people expect. "