Fed's Bostic: Fully appropriate to move policy closer to neutral, but we need to do so in a cautious way

Atlanta Fed President Raphael Bostic said on Thursday that while it is fully appropriate that the Fed move policy closer to a neutral position, it should do so in a cautious way, reported Reuters. It's going to take longer than initially thought for supply chain issues to resolve, he added, noting that the Fed's goal is to try to have sustained growth that extends for as long as possible. 

Market Reaction

Bostic is on the dovish end of the Fed spectrum nowadays, as demonstrated by his emphasis on getting rates "closer" to neutral in a "cautious" way (rather than other Fed members who want to actually get to neutral or above it in a more rapid way). Markets did not react to his comments.