Fed President Bostic believes no need for rate cuts, predicts one quarter-point cut in late 2025.

From Yahoo Finance: 2025-06-24 06:04:00

Atlanta Fed President Raphael Bostic believes the Federal Reserve doesn’t need to cut interest rates due to stable job market and companies planning to raise prices in response to import taxes. Bostic anticipates a single quarter-point rate cut late in 2025, expecting economic growth to slow and inflation to rise.

Fed Chair Jerome Powell to testify before Congress on policy, despite President Trump’s calls for immediate rate cuts. Business sentiment improves as companies adapt to potential tariff impacts by raising prices and adjusting strategies. Uncertainty around trade policies and Iran conflict may influence Fed’s cautious approach.

Bostic’s anticipated rate cut is less than median projections. Businesses in the southern Fed district are reaching limits on holding prices steady. Fed officials debate rate cuts amidst global trade tensions and mild inflation data. The imposition of tariffs on European Union and other nations adds uncertainty about future policy decisions.

Read more: Fed should wait on rate cuts with price hikes expected, Bostic says