Fed’s Bostic: Fed within “shouting distance” of neutral rate, which is where policy should head

In his prepared remarks, Atlanta Fed President Raphael Bostic argued that the Fed was within “shouting distance” of a neutral rate and added that this was the for the policy to head.

Key quotes (via Reuters)

•  “A lot to like” about current state of economy, though expects growth to slow.
• Does not expect surge in investment, and likely cooling of recent “torrid” pace of consumer spending.
• Does not address risk of yield curve inversion.
• Hard to judge risk of overheating in ‘real time,’ but feels loss of control of inflation is not something Fed should risk.
• Risk management should consider that unemployment below normal for an extended period is a ‘symptom’ of overheating.