Fed’s Bostic Says Inflation Is Still the Clearer and Urgent Risk

Federal Reserve Bank of Atlanta President Raphael Bostic said inflation remains the greater risk to the economy, and he favors keeping rates steady until it is clear the central bank is on track to reach its 2% goal.

Bostic, who announced earlier on Wednesday that he plans to retire from the Fed when his current term ends in February, said policymakers are facing a challenging environment with the labor market softening at the same time that inflation remains above target. Still, he urged caution about lowering rates further, warning that accommodative monetary policy could reignite inflation.

“Despite shifts in the ...