Fed, Bostic: ‘reasonable to start raising rates in March and cut budget shortly after’. Nasdaq futures turn red

If things continue to go the way they are, it will be reasonable to start raising rates in March. “Atlanta Fed Chief Raphael Bostic said in an interview with Reuters. Bostic added that, at that point, the reduction of the Fed’s balance sheet would begin after a short time. “There is a risk that inflation will remain high for a long period of time,” said the banker, stressing that he expects three rate hikes for 2022. “The Fed needs to act in a direct, clear and aggressive way – said Bostic – and there is a need for a quick reduction of its balance sheet”. Nasdaq futures are now negative with a drop of 0.15%.