Raphael Bostic, Interview: Rotary Club of Atlanta

“So we’ve got two policies. The interest rate is our main policy trigger. We were basically at zero, we’ve now moved about to 1% and I think we’ve got a little more to go over the next several months. And again, but the goal being inflation has got to come down. Right now it’s in the five or 6% range. Our target is 2% in the inflation space though that’s not close. So we’ve got to get it back down to that. We’re going to do whatever we can in that regard. We’re also going to start reducing the size of our balance sheet. That was another area where there was a lot of concern about the ability of our financial markets to function. I think it’s pretty clear they can function as well and so we need to pull back from that and make sure that we are as engaged as the economy, as the economy needs. And I think it needs a lot less now than it did at the beginning of the pandemic.”