The U.S. Federal Reserve raised rates four times in 2018 due to economic growth and low unemployment but signaled a shift in January, urging a wait-and-see approach thanks to an expected slowdown at home and economic weakness overseas.
The Fed should not move too fast and inadvertently weaken the U.S. economy at a time when companies are uncertain about their prospects, said Raphael W. Bostic, president
Listen to GHOGH with Jamarlin Martin | Episode 43: Jewel Burks
Partpic founder and CEO Jewel Burks discusses how she developed an idea to streamline the purchase, repair and maintenance of parts. Partpic was acquired by Amazon in 2018.
“For me, I think it’s important that we don’t go too fast and act in a non-prudent way that lines up inadvertently restricting the economy and weakening the economy,” Bostic told a banking conference in Dublin, according to a Reuters report.
“That nervousness (among businesses) has really informed my view of how we should think about it,” Bostic said. “It’s made me feel I don’t need to rush to get us into neutral, we can take our time to get to that point.”
Appointed by Barack Obama, in 2017 Bostic became the first Black president to lead any of the Fed’s 12 regional reserve banks. He busted a 104-year-old racial barrier, according to the New York Times. He’s the 15th president and CEO of the Federal Reserve Bank of Atlanta.
Fifteen of the 16 members of the Fed’s policy-making committee were white before Bostic was appointed. The exception was Neel Kashkari, president of the Federal Reserve Bank of Minneapolis, whose parents immigrated from India.
The Fed has been pressured by congressional Democrats and liberal groups to increase the diversity of its leadership — especially at regional banks.
“This could have happened a long time ago, but we’re happy that it happened now, and I look forward to this being a stepping stone for many others to have this opportunity as well,” Bostic said when he became president of the Atlanta Fed.
Historically, Fed leaders have focused on monetary policy and bank regulation, but a growing group of regional Fed presidents believe the long-term health of the U.S. economy depends on “upskilling” U.S. workers and revitalizing communities that have been left behind, Washington Post reported.
Bostic is working on an initiative to address workforce issues. He launched the Center for Workforce and Economic Opportunity, focused on jobs for low-income workers.
