Atlanta Federal Reserve President Raphael Bostic signaled on Wednesday that the US central bank may need to take even more drastic steps to get inflation under control.
Following the worse-than-feared June inflation report, Bostic said high prices could require officials to consider raising interest rates by a full percentage point at the meeting later this month.
“Everything is in play,” Bostic told reporters, according to comments reported by Reuters and confirmed to CNN by an Atlanta Fed spokesperson.
The Fed raised interest rates last month by three-quarters of a percentage point, the biggest hike since 1994.
Markets were somewhat cheered by Bostic’s statement. The Dow was down only 75 points after tumbling about 400 points at the open. The S&P 500 was slightly higher, and the Nasdaq rose 0.4%.
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