Inflation remains on path to 2% target, but at slow pace, Fed's Bostic says

Investing.com -- Atlanta Federal Reserve president Raphael Bostic said Thursday recent data show inflation remains on track toward the 2% target, but at a slow pace, suggesting rates would need to remain higher for longer. 

"The couple of inflation numbers suggest it's going back to 2%, but going slow," Bostic said Thursday, adding that the fed can afford to wait as the underlying strength in the job market suggests a recession isn't on the horizon. 

"We are not in danger of falling into a more contractionary environment," Bostic added. 

The Atlanta Fed chief also downplayed the risk of a rate hike, saying it was important for central bank to move rates in one direction only.

The remarks come a day after the minutes from the Fed's May meeting showed members were uncertain on whether the current level of interest rates were restrictive enough to curb economic growth and inflation.