Fed's Bostic: Ready to 'move away' from large rate increases at next meeting

By Howard SchneiderWASHINGTON (Reuters) - Atlanta Federal Reserve President Raphael Bostic said Saturday he is ready to "move away" from three-quarter-point rate hikes at the Fed's December meeting and feels the Fed's target policy rate need rise no more than another percentage point to tackle inflation."If the economy proceeds as I expect, I believe that 75 to 100 basis points of additional tightening will be warranted," Bostic said in remarks prepared for delivery at the Southern Economic Association. "I believe this level of the policy rate will be sufficient to rein in inflation over a reasonable time horizon."That would set the Fed policy rate at a range between 4.75 and 5%, slightly below the peak rate expected by investors. It is currently set in a range between 3.75% and 4%.The Fed at its December meeting is expected to raise rates by half a percentage point after using three-quarter point increments at its last four meetings, a view endorsed by Bostic as well as a range of other Fed officials recently.