Atlanta Federal Reserve President Raphael Bostic indicated that a robust economy provides the US central bank with the opportunity to consider the effects of tariffs on inflation and growth, while also expressing openness to the potential for a single interest rate cut later this year.
Key Quotes
- Best monetary policy approach now entails ‘patience’.
- Given the ‘healthy’ economy, the Fed has time to see how uncertainty resolves.
- ‘I am in no hurry to adjust our policy stance.’
- Still sees a possible path to one interest rate cut this year, depending on the economy.
- ‘Tough call’ to say if Fed would be cutting rates absent trade uncertainty.
- Says he is ‘very cautious’ about jumping to cutting rates.
- Says he needs to see more progress on lowering inflation before supporting a rate cut.
- Not declaring victory on inflation yet.
- Say there is still a way to go on inflation; core prices are ‘still an issue’.
- Unclear right now how tariffs will affect the inflation outlook.
- Hard data has yet to reflect the ‘gloomier’ sentiment mood.
- Job market appears broadly healthy, with some signs of weakness.
- No sign yet tariffs have boosted inflation.
- Recession is not in his forecast right now.
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