Fed’s Bostic: Fiscal policy is creating more uncertainty for the Fed

Atlanta Fed President Raphael Bostic is out on the wires now, speaking on the US economy in an interview with the Walls Street Journal (WSJ).

Main Highlights:

Fiscal policy is creating more uncertainty for the Fed.

Risks are more to the upside now (with regards to growth).

More uncertainty on how 2019 is going to look like.

Tax cuts could raise growth without boosting inflation.

But federal spending increase is likely to boost demand.

Which in turn would put more pressure on inflation.

Could be that 2019 is going to be where more of the action is.