Fed’s Bostic: Fed has time to wait and see

Atlanta Fed President Raphael Bostic acknowledged the persistent uncertainty around tariffs and their inflationary impact, highlighting at the same time the Federal Reserve’s ability to remain patient given the strength of the labour market.

Key Quotes

• Advance warning on tariffs has allowed firms to manage the process.
• There is still a lot of uncertainty about where trade policy will go.
• It will take time before full clarity arrives on trade policy.
• Tariff impacts will play out over time.
• Risk tariff-related inflation will affect expectations; it's an open question.
• Much of the tariff pricing hasn't worked itself into the economy yet.
• Needs more information to know what's next for monetary policy.
• Uncertainty over outlook is more than just trade policy driven.
• People don't like when monetary policy is volatile.
• The Fed has the luxury to be patient; the job market is solid.
• The Fed has time to wait and see before acting on rates.
• "I'm still there," expecting one cut this year.
• Pencilled in three rate cuts next year.