TechFlow, September 3 — Atlanta Fed's Bostic reiterated that he believes one rate cut this year is appropriate, though this could change depending on inflation and labor market developments. "I believe that although price stability remains the primary concern, the labor market has slowed sufficiently such that some policy easing—likely around a 25 basis point cut—would be appropriate over the remainder of the year."
"The situation could change, depending on the trajectory of inflation and evolution of the labor market over the coming months." On inflation, Bostic said he remains concerned that the impact of tariffs on prices may persist. "I still don't think the effect of tariffs on prices will fade quickly—in fact, it may not fully materialize for several months. I'm not complacent, nor am I simply assuming expectations will remain anchored without another inflationary surge." (Jinshi)
