Leaders.com
  • Business
  • Leadership
  • Wealth
  • Master Classes
  • Business
    • Entrepreneurs
    • Executives
    • Marketing and Sales
    • Social Media
    • Innovation
    • Women in Business
  • Leadership
    • Personal Growth
    • Company Culture
    • Public Speaking
    • Productivity
    • Hiring
    • Social Issues
    • Leaders
  • Wealth
    • Investing
    • Cryptocurrency
    • Retirement
    • Venture Capital
    • Loans and Borrowing
    • Taxes
    • Markets
    • Real Estate
  • Master Classes
Markets

Fed President Raphael Bostic shares warning (Eric Hart Jr. for The Washington Post via Getty Images)

By Tyler Hummel Leaders Staff

Tyler Hummel

Tyler Hummel

Tyler Hummel is a news writer for Leaders Media. He was the Fall 2021 College Fix Fellow and Health Care...

Full bio


Learn about our editorial policy

May 15, 2023

Fed Officials Are Cautious About Hikes 

Speaking in a Monday CNBC interview, two Federal Reserve officials offered criticism of the direction of monetary policy. 

Key Details

  • The Federal Reserve raised hikes to a target range of 5% to 5.25% on May 3, marking the 10th consecutive rate hike in 14 months.  
  • Both officials agree that pausing interest rate hikes would be a benefit to assess the effectiveness of the current rate, but both disagreed on details, Bloomberg notes.  
  • Atlanta Fed President Raphael Bostic argues that the Fed will not lower rates before next year until the current wave of inflation has decreased to 2%. 
  • Chicago Fed economist Austan Goolsbee offered a more cautious tone, arguing that the Fed may overtighten this year.

Why It’s News 

The Fed’s aggressive moves have proven to be a necessary and potentially dangerous overcorrection that has drawn bipartisan scrutiny toward the central bank. Business leaders like Cathie Wood and Elon Musk have criticized the Fed for potentially sparking a deflation crisis in the near future, while Senator Elizabeth Warren (D-MA) has accused the Fed of wrongly failing to blame corporate greed for being the source of inflation. 

Raising interest rates does appear to be making inroads with the economy. Inflation has consistently dropped for the past half year while the labor market has tightened, rent hikes are dropping, and consumer spending on large purchases is shrinking. Strong economic numbers have even encouraged analysts to predict that a soft landing for the economy is off the table, due to high consumer spending and resilience. 

Bostic still argues that a cautious approach is necessary to correct for the aggressive Fed stance of the past year. Rates may not drop before 2024, but continually raising rates may come at a severe cost to the economy. He still believes that it is more likely for the Fed to continue raising interest rates than to back off. 

“We’re seeing the tightening that needed to happen and now the question is how much is that really going to bind on activity. The appropriate policy is really just to wait and see how much the economy slows from the policy actions that we’ve done,” says Bostic.

Home / News / Fed Officials Are Cautious About Hikes 
Share
FacebookTweetEmailLinkedIn

Related Stories

Seattle Takes The Crown For Advanced Tech Talent

by PJ Howland Leaders Staff
Tech

Oct 24, 2023

Seattle tech talent

Seattle has emerged as the metro area with the most advanced tech talent, beating out tech hubs like San Francisco and Silicon Valley.

Key Details

  • According to a new ranking by the Burning Glass Institute, Seattle has the highest proportion of advanced tech workers compared to other cities with similarly sized tech workforces.
  • The ranking evaluated 60 million high-paying, in-demand tech job postings and histories to identify cities with cutting-edge roles like AI and cybersecurity rather than legacy tech positions.
  • With tech giants Amazon and Microsoft headquartered in Seattle, the city edged out the San Francisco Bay Area, Boston, Austin, and Raleigh on the list.
  • The report found that demand for software developers and IT support specialists has declined over the past five years as companies seek more specialized tech talent.

Go deeper

FacebookTweetEmailLinkedIn

More Americans Can’t Keep Up With Car Payments

by Colin Baker Leaders Staff
Loans and Borrowing

Oct 23, 2023

car loans, used cars

A record number of Americans are behind on their car loan payments as higher interest rates and prices weigh on consumers.

Key Details

  • According to data from Fitch Ratings, 6.11% of car loans were at least 60 days delinquent in September, the highest since tracking began in the early 2000s.
  • Some interest rates on used cars can rise to as much as 21%, according to Bankrate.
  • Soaring prices and rising interest rates are squeezing consumers, making it difficult for some to keep up with their auto loans.

Go deeper

FacebookTweetEmailLinkedIn

Chevron Makes $53 Billion Deal Amid Surging Gas Prices

by PJ Howland Leaders Staff
Markets

Oct 23, 2023

Chevron Gas Deal

Chevron is acquiring Hess Corp. for $53 billion, the second significant oil producer acquisition this month as crude prices climb.

Key Details

  • Chevron is purchasing Hess in an all-cash deal worth $53 billion, including debt and preferred stock redemption.
  • This comes just weeks after ExxonMobil announced its $59.5 billion purchase of Pioneer Natural Resources.
  • With oil over $80 per barrel, major producers are using their windfall profits to acquire smaller players and boost payouts to shareholders.
  • Chevron expects the deal to close in H1 2023 pending regulatory approvals and Hess shareholder vote.
  • Hess CEO John Hess will join Chevron's board once the acquisition is complete.

Go deeper

FacebookTweetEmailLinkedIn
nike logo
Company Culture

Oct 20, 2023

Nike to Require More In-Office Days From Employees

by Colin Baker Leaders Staff
blue collar workers
Retirement

Oct 20, 2023

Explaining The ‘C+ Grade’ Retirement Ecosystem in The United States

by PJ Howland Leaders Staff
netflix building
Entertainment

Oct 19, 2023

Netflix Hiking Prices While Adding Millions of Subscribers

by Colin Baker Leaders Staff

Recent Articles

Hiring

Nov 1, 2023

Learn the Winning Answers to the Most Common Phone Interview Questions

Come to your next phone interview fully prepared

Personal Growth

Oct 30, 2023

85 Quotes on Self-Love to Boost Your Self-Esteem

Don’t fall into the trap of harsh self-criticism

Company Culture

Oct 27, 2023

What is a Sabbatical? Your Ticket to Restful Growth and Meaning

Sabbaticals can benefits both employees and businesses

  • Business
  • Leadership
  • Wealth
Join the Leaders Community

Get exclusive tools and resources you need to grow as a leader and scale a purpose-driven business.

Subscribing indicates your consent to our Terms & Conditions and Privacy Policy

Leaders.com
  • Privacy Policy
  • About
  • Careers
  • Cookie Policy
  • Terms
  • Disclosures
  • Editorial Policy
  • Member Login

© 2025 Leaders.com - All rights reserved.

Search Leaders.com