Fed officials encourage patience in fee decisions amid tariff uncertainty

Atlanta Federal Reserve President Rafael Bosstack warned Thursday that he believes tariffs are likely to be caused over the long term. Stretching inflation In contrast to the former cost spikes.

“As a standard textbook model suggests, rather than a short, simple one-off shift in prices, Bostic said it expects geopolitical developments simultaneously with changes in US trade policies will lead to a “longer period increase” over a year.

Amidst increasing pressure from the president Donald Trump With the Fed, which relaxes its monetary policy stance, Bostic firmly supported Federal Reserve Chairman Jerome Powell’s comments starting Tuesday.

Federal Reserve Chairman Powell has confirmed concerns about tariffs that have prevented interest rate cuts so far this year

Bostic, who is not a voting member of the Central Bank Rate Setting Federal Open Market Committee (FOMC), said the current period, marked by economic uncertainty, “there is no time for significant changes in monetary policy.”

The next FOMC meeting will be from July 29th to 30th. Trump’s 90-day suspension on the cleaning “mutual tariffs” he announced on April 2 will expire on July 9th.

Inflation measurements for March, April and May 2025 showed that inflation levels were slightly higher Fed’s 2% target, Bostic said the tariffs “have not substantially affected consumer prices.” But Bostic said he believes it is not evidence that the economy has taken away tariff-related price pressures, but rather reflects a “corporate strategy” that will slow the rise in final rates until the final tariff rate is set.

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Atlanta Fed Chief’s comments at a lecture held in Frankfurt, Germany came hours later on Thursday June unemployment report Jobs that month exceeded expectations, showing the economy added 147,000 jobs and the unemployment rate was marked at 4.1%.

The Fed has been stabilizing interest rates since December 2024, with the central bank reducing its target range by a quarter percentage point.

Powell said Tuesday. He believes the Fed would continue to cut interest rates if tariffs were not implemented, and added that “it was put on hold when we saw the scale of the tariffs.”

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Bosstack’s call for patience in monetary policy moves was when Richmond Federal Reserve President Tom Birkin assessed the central bank’s position on Wednesday.

In an interview with Fox Business’s “The Claman Countdown,” Barkin compared FOM’s efforts to identify the impact of tariffs on an economy that “passes through the fog.”

“I don’t know what the impact of policy will have on the economy,” Birkin said. “And unless there is urgency from a larger environment, I think I will do what I do when you run through the fog.