Fed's Stance on Interest Rates

Raphael Bostic, President of the Federal Reserve Bank of Atlanta, emphasized the importance of patience in the Federal Reserve's approach to monetary policy. He stated that the central bank will hold off on making any moves until it has sufficient information, suggesting that any potential interest rate cuts are not on the immediate horizon.

Economic Forecasts and Policy Uncertainty

Bostic highlighted the challenges in making confident economic forecasts due to the high level of policy uncertainty. He reassured that the Fed will remain cautious, waiting for more clarity before taking any action. He also projected that, if the economy progresses as expected, the Fed's 2% inflation target could be achieved by early 2026.

Impact of Tariffs

On the topic of tariffs, Bostic pointed out the complexity and variability of their impact, noting that the final effects will largely depend on the specific details of the policies implemented.