The shift comes as President Joe Biden nears a decision on whether to keep Jerome Powell as Fed chair for another term, or to elevate Governor Lael Brainard to that post instead. Earlier this week Biden signaled he could make an announcement on Friday.
On Thursday, one of the U.S. central bank's most reliable policy doves said he is "more open-minded" to raising interest rates next year than he was six months ago. A 2022 interest rate hike, Chicago Fed President Charles Evans said, could be appropriate if inflation continues to stick despite his expectations to the contrary."I wouldn’t describe it as hair on fire or anything like that," Evans told reporters after a talk.
Bostic previously said he was among the half of Fed policymakers who, as of September, thought a rate hike would be appropriate by next year, but his public embrace of a mid-2022 liftoff is new.