Inflation needs to be brought under better control before the Federal Reserve starts reversing its monetary policy of boosting interest rates, a Miami-based regional executive with the Federal Reserve Bank of Atlanta said Tuesday, during a regional economic summit at Key Biscayne.
The U.S. Consumer Price Index, or CPI, in February was 6% over the past 12 months, the eighth consecutive monthly drop. Yet, prices need to fall in a greater variety of goods and services, said Shari Bower, vice president and regional executive of the Miami branch of the Fed’s bank in Atlanta.
Although trending down, more than 60% of items in the basket of goods factored into the CPI saw price rises of more than 5% last month, she said, speaking to about 300 people at the South Florida Economic Summit held by the Greater Miami Chamber of Commerce.
