Bostic Open to Rate Cut as Atlanta Fed Sees Uncertain Economic Climate

Atlanta Federal Reserve President Raphael Bostic has indicated a potential for a rate cut this year, citing economic uncertainty and concerns about the labor market’s slowing pace. While inflation remains a key priority, he believes the slowdown in job growth warrants some easing of monetary policy, possibly through a 25 basis point reduction. However, the decision hinges on the trajectory of inflation and the evolution of employment data over the coming months. Notably, Bostic highlighted lingering concerns about tariffs’ impact on prices, suggesting their effects might persist beyond the immediate horizon. He warned against complacency by urging caution against assuming price stability without a further inflation surge.