[Fed's Bostic: One Rate Cut Still Appropriate in 2025] Atlanta Fed's Bostic reiterated that he believes one rate cut this year is appropriate, although this may change depending on inflation and the job market. "I believe that while price stability remains the top priority, the labor market has slowed enough that some accommodative policies (possibly a 25 basis point cut) would be appropriate for the remainder of this year." "The situation could change depending on the trajectory of inflation and the evolution of the job market in the coming months." On inflation, Bostic expressed that he remains concerned about the lasting impact of tariffs on prices. "I still believe that the impact of tariffs on prices will not fade quickly, and in fact, it will not fully manifest for several months. I will not be complacent, simply assuming expectations will remain stable and there will not be another inflation outbreak."
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Fed's Bostic: It is still appropriate to cut interest rates once in 2025
[Fed's Bostic: One Rate Cut Still Appropriate in 2025] Atlanta Fed's Bostic reiterated that he believes one rate cut this year is appropriate, although this may change depending on inflation and the job market. "I believe that while price stability remains the top priority, the labor market has slowed enough that some accommodative policies (possibly a 25 basis point cut) would be appropriate for the remainder of this year." "The situation could change depending on the trajectory of inflation and the evolution of the job market in the coming months." On inflation, Bostic expressed that he remains concerned about the lasting impact of tariffs on prices. "I still believe that the impact of tariffs on prices will not fade quickly, and in fact, it will not fully manifest for several months. I will not be complacent, simply assuming expectations will remain stable and there will not be another inflation outbreak."