MNI BRIEF: Fed's Bostic In Wait And See Mode On Rates
MNI (WASHINGTON) - Federal Reserve Bank of Atlanta President Raphael Bostic said Monday he's comfortable waiting "for a while" to see how the economy evolves after the Fed cut rates by 100 bps last year and the Trump administration makes changes to trade and regulatory policies.
"I want to see what the 100 bps we did last year translates to in terms of the economy. Depending on what the data are, it might mean that we are waiting for a while," Bostic told the Rotary Club of Atlanta.
"I had uncertainty on Dec. 31. The amount of uncertainty we have today is greater than that. I want to be cautious and I don't want to have our policy lean in a direction making an assumption our economy is going to evolve a certain way and then I have to turn and unwind. There are a lot of things I have to wait and see about before I feel confident I know which direction policy will go."
Economists expect tariffs would raise prices but deregulation would unleash investment and productivity and put downward pressure on prices, he said. (See: MNI INTERVIEW: Fed Rates Likely On Hold Through 2025-Croushore)