Atlanta Fed President Raphael Bostic reiterated today that the Federal Reserve needs to keep policy restrictive to address inflation that remains above target. While acknowledging that the labor market has loosened over the past year, Bostic said an unemployment rate of 4.4% still reflects a strong employment backdrop.
Bostic said he expects US GDP growth “north of 2%” this year, adding that growth in the mid-2% range would not surprise him. From a historical perspective, he described that pace as “incredibly strong,” arguing that the US economy continues to operate above its “long-run potential” and that this momentum should extend into 2026.
He attributed the outlook to resilient consumer, stronger household balance sheets than before the pandemic, and policy support from last year’s tax bill. With growth that firm, Bostic warned price pressures are likely to persist, noting that inflation risks extend beyond tariffs to areas such as medical insurance.
