Fed’s Bostic: Inflation still top concern, sees one cut in 2025

Atlanta Fed President Raphael Bostic said today that “price stability remains the primary concern,” after four years above target inflation, though a slowing labor market likely justifies one quarter-point rate cut this year.

Bostic warned that tariffs could add renewed price pressures, with firms unlikely to absorb higher import costs indefinitely. He said the full implications of trade policy shifts, federal deregulation, and tax changes remain unclear and could take months to filter through.

On employment, Bostic noted that hiring has slowed but so has labor supply growth, keeping the economy close to full employment. Bostic said, while “the labor market is slowing enough that some easing in policy – probably on the order of 25 basis points – will be appropriate over the remainder of this year.”