Atlanta Fed President: "US Fed May Raise Interest Rates by 50bp at Once"

[Image source=Yonhap News]

[Asia Economy Reporter Jin-ho Kim] Raphael Bostic, President of the Federal Reserve Bank of Atlanta and a member of the U.S. Federal Reserve (Fed), predicted that the Fed could expand the rate hike to 50 basis points (1bp=0.01 percentage point) to curb inflation.

According to major foreign media on the 30th, President Bostic said the most likely scenario is that the Fed will raise rates three times this year, starting in March. In particular, he stated that a stronger rate hike could occur due to elevated consumer prices.

President Bostic said, "If the data review shows that a 50bp hike at once is necessary, I would accept it."

The Fed, which held its first regular Federal Open Market Committee (FOMC) meeting this month, has seven meetings scheduled from March this year. Usually, the Fed raises rates by 25bp at each regular meeting when increasing rates. However, larger hikes are possible if necessary.

Earlier, on the 27th, Fed Chair Jerome Powell hinted at the possibility of raising the benchmark interest rate more than five times within the year during a press conference after the FOMC regular meeting, causing a significant stir.

If a 50bp hike occurs as President Bostic predicted, it would be the first time in 22 years since 2000.

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