"The fight against inflation is still in its early stages," Bostic said in a live-streamed discussion on the economy on Wednesday. Asked whether an interest rate cut was possible by 2023, he replied: "Not so fast."
Fed Vice Chair Lael Brainard said last week that US inflation remained at a "very high" level and could continue to shock Americans.
The Fed’s preferred inflation indicator, the Personal Consumption Expenditures (PCE) Index, grew 6.2% during the year to August, versus 6.3% in the 12 months to July.
Economists polled by US media had expected the so-called PCE Index to expand by just 6% during the year to August.
30 September 2022, 14:13 GMT
On a monthly basis, the PCE Index actually grew more in August than in July, rising 0.4% from a previous 0.1%. Economists had expected a monthly growth of 0.2% in August.
The PCE reading showed the Fed had made little progress in its fight against inflation despite sharp drops in gasoline prices over the past three months. The central bank has warned of late that it will not let up on rate hikes it had embarked on since March to fight inflation.
Bostic reinforced that stance on Wednesday saying "The Fed should not be too quick to cut rates if the economy weakens, but should remain focused on lowering inflation."
"According to the August inflation report, price pressures remain broad and persistent. Rents, medical and other services are still rising, and supply chains are not fully repaired," he said.
To fight inflation, the Fed has raised interest rates by 300 points this year, from an original base of just 25 points in February. The central bank’s chairman Jerome Powell said last week that US rate hikes will have some way to go before the Fed considers a pause or reduction, with the likelihood of another 125 basis points being added before the end of this year.