“Atlanta Fed Chairman Says Interest Rates May Need to Be Raised, Not Lowered”

May 15 (Reuters) – The chairman of the U.S. central bank’s Atlanta branch, Raphael Bostic, said on Monday he did not expect interest rates to fall this year and that on the contrary , they may need to be raised, as inflation is not falling as quickly as market participants believe.

There is still a long way to go to get inflation back to the Federal Reserve’s (Fed) 2% target, Raphael Bostic told CNBC, although progress has been made.

“If there is going to be any direction to act, I think there would be a tendency to raise (rates) a bit more, rather than lower them,” he said.

(Ann Saphir, French version Laetitia Volga, edited by Blandine Hénault)