Fed’s Bostic: The best approach for monetary policy is patience

Pablo Piovano FXStreet

Atlanta Federal Reserve President Raphael Bostic indicated that a robust economy provides the US central bank with the opportunity to consider the effects of tariffs on inflation and growth, while also expressing openness to the potential for a single interest rate cut later this year.

Key Quotes

Best monetary policy approach now entails 'patience'.
Given the ‘healthy’ economy, the Fed has time to see how uncertainty resolves.
'I am in no hurry to adjust our policy stance.'
Still sees a possible path to one interest rate cut this year, depending on the economy.
'Tough call' to say if Fed would be cutting rates absent trade uncertainty.
Says he is 'very cautious' about jumping to cutting rates.
Says he needs to see more progress on lowering inflation before supporting a rate cut.
Not declaring victory on inflation yet.
Say there is still a way to go on inflation; core prices are 'still an issue'.
Unclear right now how tariffs will affect the inflation outlook.
Hard data has yet to reflect the 'gloomier' sentiment mood.
Job market appears broadly healthy, with some signs of weakness.
No sign yet tariffs have boosted inflation.
Recession is not in his forecast right now.

Author

Pablo Piovano

FXStreet

Born and bred in Argentina, Pablo has been carrying on with his passion for FX markets and trading since his first college years.

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