Atlanta Fed's Bostic warns tariffs could lead to prolonged inflation, urging caution in policy decisions

Atlanta Federal Reserve President Raphael Bostic predicts prolonged inflation due to changes in U.S. trade policy and geopolitical developments. He supports Fed Chair Powell’s stance to wait on policy adjustments amid tariff concerns. Inflation levels have slightly exceeded the Fed’s 2% target, reflecting delayed price increases by firms. The Fed has kept interest rates steady since December 2024, with Powell indicating potential rate cuts if tariffs were not in place. Bostic and Richmond Fed President Barkin advocate for caution in monetary policy decisions amidst tariff uncertainties, likening it to driving through fog.

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