The U.S. Federal Reserve should continue raising its interest rate gradually until it gets to a neutral rate, Atlanta Fed President Raphael Bostic said on Tuesday.
Bostic told an economic forum in Baton Rouge, the State of Louisiana, that the U.S. economy was performing well enough to stand on its own, even without the support from accommodative monetary policy.
"Unless the data talk me out of it, I view a continued, gradual removal of policy accommodation as appropriate until we get to a neutral policy rate," said Bostic.
"We are still a few rate hikes away," said Bostic, speaking of the neutral rate, at which monetary policy is neither contractionary nor expansionary.
Comparing policy-making to driving, Bostic said that the Fed doesn't need to "keep our foot on the gas pedal".
"After our policy foot is off the gas, but not on the brake, I will look to see if consumers and businesses continue to act in ways that do not suggest a buildup of excesses," said Bostic.
"If that continues, it will give me confidence that the economy is on a sustainable path," he added.
Last week, the Fed released the minutes of a policy meeting held in late September, which signaled that the central bank would continue to raise interest rates gradually in order to prevent economic overheating.
Last month, the Fed raised the target range for the federal funds rate to 2-2.25 percent. It is largely expected to hike once more before year-end.
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