Fed's Bostic admits Fed is in a "difficult environment" as jobs data flashes warning signs

Federal Reserve (Fed) Bank of Atlanta President Raphael Bostic noted on Friday that the latest round of US Nonfarm Payrolls (NFP) jobs data, including revisions, is certainly cause for rate conversation at the Fed, but inflation metrics are still an ingoing concern, especially as the Trump administration ramps tariffs up further.

Key highlights

Jobs data was significant, revisions were the bigger story.
Jobs market slowing from strong levels.
Still need to determine what trend of hiring will be.
Into this week the bigger risk was on the inflation front.
Risk on jobs front may be coming into better balance with inflation risks.
Bostic doesn't think jobs data would have changed this week's Fed interest rate decision.
In many ways job market still looks good.
Issue appears to be slowing jobs market, unclear how much more weakness ahead.
Bostic still expects one rate cut this year.
Open to changing Fed view if data supports it.
Need to see how things evolve over coming months.
Tariffs are not ruling out like textbook examples.
If tariffs successful, Fed can't just look through them.
Will take a while for firms to price for tariff rise.
We are in a very difficult environment right now.
There are risks on both sides of the Fed's mandate.
Active debate on how restrictive Fed policy is right now.