Atlanta Fed President Raphael Bostic signaled that the strength of the US labor market gives policymakers breathing room before deciding on rate moves. With unemployment near full employment, he said the Fed can avoid rushing into policy changes. “My predisposition is to try not to do that,” he said, emphasizing the need for more clarity before acting.
Bostic stressed that while inflation remains the primary mandate risk, the job market is in solid shape, and the coming weeks should be spent assessing its underlying health. That evaluation will be key in setting the tone for the Fed’s September meeting, he said.
Turning to tariffs, Bostic noted that Trump’s trade measures differ from past experiences in scope, scale, and intent. Rather than simply raising prices temporarily, he said they could fundamentally alter global supply chains, meaning post-tariff inflation could follow an entirely different trajectory. “It is actually a different economy,” he added.
