August 20, 2018 / 5:49 PM / 8 months ago

Fed's Bostic expects one more interest rate hike in 2018

FILE PHOTO: Atlanta Federal Reserve Bank President, Raphael Bostic speaks with Reuters in an interview at Stanford UniversityÕs Hoover Institution in Stanford, California, U.S., May 4, 2018. REUTERS/Ann Saphir/File Photo

KINGSPORT, Tenn. (Reuters) - Atlanta Federal Reserve Bank President Raphael Bostic said on Monday he is sticking with his expectation of one further interest rate increase this year as recent global events add some downside risk to a strong U.S. economic outlook.

Markets should expect the Fed’s rate increases to touch off some reshuffling of global capital, Bostic told reporters after a luncheon here, adding that the swiftness of the Turkish lira’s recent decline caught officials “by surprise.”

“There is value in returning to normal” monetary policy as the economy no longer needs stimulus, Bostic said. “There should be some reshuffling as that normalization happens.”

Reporting by Howard Schneider; Editing by Paul Simao

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