Federal Reserve Bank of Atlanta President Raphael Bostic spoke earlier:
More now:
- Tariffs introduce higher costs, which will eventually lead to higher prices.
- Whether those higher prices result in sustained inflation remains an open question.
- At the start of the year, my outlook was that inflation would be volatile, and that’s exactly what we’ve seen.
- From the beginning, I was already in a reassessment mode, looking for a clearer signal.
- The overall direction remains uncertain.
- Businesses are optimistic about certain areas of the economy, such as deregulation and energy.
- I don’t think we’ll have a clear answer for some time.
- I’d be surprised if we gain significant clarity on the impact of these policies before late spring or summer.
- The decision at the May or June meeting will depend on how much clarity we have by then.
- We’ll need to be patient.
- It’s never ideal for the Fed to shift policy direction from one meeting to the next.
- It’s prudent for the Fed to remain patient and alert, allowing developments to unfold rather than reacting too quickly.
This article was written by Eamonn Sheridan at www.forexlive.com.
