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Fed's Bostic says he will watch trajectory of inflation when setting policy

NEW YORK, Sept 3 (Reuters) - The Federal Reserve’s understanding of the relationship between employment and inflation has shifted and determining when to raise interest rates will depend more on the trajectory of inflation than the exact level, Atlanta Fed President Raphael Bostic said on Thursday.

Bostic said he would not be concerned with inflation going above the Fed’s goal of 2%, reaching up to about 2.4%, if prices remain stable. “As long as we see the trajectory moving in ways that suggest that we are not spiraling too far away from our target, I’m comfortable just letting the economy run and letting it play out,” Bostic said in an interview with the Wall Street Journal. (Reporting by Jonnelle Marte Editing by Chris Reese)

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