Chairman of the Federal Reserve testifies Jerome Powell for the Huis Financial Services Committee.
President of Atlanta Federal Reserve Raphael Bostic warned on Thursday that he believes that rates will probably cause long -term inflation in contrast to a one -off peak in costs.
Instead of “a short and simple one -time prize shift, such as standard textbook models suggest,” Bostic said that he is expecting changes in American trade policy, together with simultaneous geopolitical developments, lead to “a longer period of increased inflation” for one year or more.
In the middle of the increasing pressure of President Donald Trump on the FED to release her monetary policy position, Bostic supported the comments from Federal Reserve Chairman Jerome Powell from Tuesday that the central bank should wait to adjust its policy position, because it will continue to follow how rates can influence the prizes.
President of Atlanta Federal Reserve Raphael Bostic said that he is expecting changes in American trade policy, along with simultaneous geopolitical developments that will lead to “a longer period of increased inflation in the course of a year or more”. (Photographer: Valerie Pelsch / Bloomberg via Getty Images / Getty images)
FED -President Powell confirms that the tariff problems have previously prevented the interest rates this year this year
Bostic, who is not a member entitled to vote, the rate of the Central Bank that is the Federal Open Markt Committee (FOMC), said that the current period characterized by economic uncertainty “is not time for important shifts in monetary policy”.
Inflation lectures from March, April and May 2025 showed that the inflation levels float slightly above the target of 2% of the FED, of which Bostic said that the rates “had not considered consumer prices considerably.” Nevertheless, Bostic said that he believed, reflected, reflecting “strategies from companies in recent months to postpone the substantive price increases” until the final rates have been set, instead of the evidence that the economy had taken rate -related price pressure.
Trump’s tariff policy reformts online store habits, new reports
The comments from the Atlanta Fed Chief during a lecture in Frankfurt, Germany, arrived hours after the unemployment report on Thursday in June that the assumption of the month exceeded expectations, where the economy adds 147,000 jobs and ticks the unemployment rate to 4.1%.
The FED has kept the interest rates steadily since December 2024, when the central bank reduced its target range by a quarter of a percentage point in the midst of what seemed like a speed cutting cycle that would certainly continue.
Federal Reserve chairman Jerome Powell said on Tuesday that he believes that the central bank would continue to reduce interest rates if no rates have been implemented. (Reuters/Amanda Andrade-Rhoades/File Photo/Reuters photos)
Powell said on Tuesday that he believes that the Fed would continue to lower the interest rates if no rates had been implemented, adding that “we were on hold when we saw the size of the rates.”
Get Fox Business on the Go by clicking here
Bostic’s calling for patience on monetary policy movements repeated the assessment of Richmond Federal Reserve President Tom Barkin of the position of the central bank on Wednesday.
Bostic’s calling for patience on monetary policy movements repeated the assessment of Richmond Federal Reserve President Tom Barkin of the position of the central bank on Wednesday. (Photographer: Valerie Pelsch / Bloomberg via Getty Images / Getty images)
“You don’t know what the impact of policy on the economy will be,” said Barkin. “And as long as there is no urgency from the larger environment, I think someone does what someone does when you drive through fog, who goes slowly.”
