Businesses, consumers and the Fed are moving carefully because of uncertainty, says Raphael Bostic. “When the fog gets thicker, you're going to pull over and wait.”

Despite high prices, “wages are growing faster than inflation,” and families’ purchasing power is growing, he says.

“Wage growth now is greater than inflation,” Bostic says. “But I don’t think people feel like they’ve caught up all the way and that’s just going to take some time.”

Raphael Bostic says the Fed needs to stay focused on its goal of slowing down the economy and reducing inflation to its 2% target.

Raphael Bostic, president and CEO of the Federal Reserve Bank of Atlanta, on why he supports this week’s rate hike.

While Amazon and Home Depot are doing well, small businesses are not. “There really is a split going on, and disparities are getting wider,” he says.

Raphael Bostic discusses the challenges of the economy and racial inequality.

Raphael Bostic explains why consumer psychology keeps him up at night.