Fed's Bostic says rates will probably rise if inflation moves away from target

DUBLIN: The Federal Reserve will have to increase rates if prices growth moves away from target or inflation expectations start to move in "a difficult way", Atlanta Federal Reserve President Raphael Bostic said, while adding that neither was happening right now.

"If inflation moves away from target or seems to significantly stall out, then we'll probably have to do more or if inflation expectations start to move in a difficult way, we might have to do more," Bostic, who favours holding rates steady for the rest of the year, told reporters in Dublin.

Fed likely to hike rates one more time and then hold steady, Bostic says

"We're not seeing either of those right now and as a consequence, I'm comfortable waiting ... If I see signs that it is moving away, I'll be right in front of the line to say we need to move rates higher, we need to be aggressive."