According to a report by Golden Finance, Atlanta Federal Reserve President Raphael Bostic said that given the uneven progress in fighting inflation, policymakers should remain cautious and keep the Intrerest Rate at a higher level to achieve price stability goals. In a podcast recorded on December 9 and released on Tuesday, Bostic stated that his expectation is for inflation to continue to gradually decline this year, with the possibility of reaching the Federal Reserve's target of 2%, despite occasional signs of stagnation or rapid price increases. Bostic said, 'Considering the fluctuation of inflation indicators, I believe policymakers should maintain a more cautious attitude.' 'I want to make sure we get the right signals and ensure that our policies are calibrated in a timely manner based on these correct signals. If we have to make mistakes, I would rather err on the side of a higher Intrerest Rate,' Bostic said in the podcast.

Analysts at Deutsche Bank said in a report that the possibility of a U.S. economic recession remains high. They argue that it is difficult for the Fed to get "quite right" because there is so much uncertainty about interest rates in achieving economic growth without stoking inflation. Because of this, they argue, the Fed is more likely to err on the side of over-tightening. In this case, a soft landing would be a "lucky" situation. "Getting inflation back to target will still likely require the Fed to push demand below potential," analysts said.