Atlanta Fed's Bostic warns tariff impacts could cause prolonged inflation

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changes in U.S. trade policy along with concurrent geopolitical developments to lead to "a longer period of elevated inflation" over the course of a year or more.Amid mounting pressure from President Donald Trump on the Fed to loosen its monetary policy position, Bostic firmly backed Federal Reserve Chairman Jerome Powell’s comments from Tuesday that the central bank should wait to adjust its policy stance as it continues to track how tariffs might impact prices.Atlanta Federal Reserve President Raphael Bostic said he expects changes in U.S. trade policy along with concurrent geopolitical developments to lead to "a longer period of elevated inflation" over the course of a year or more.Fed Chair Powell Confirms Tariff Concerns Prevented Interest Rate Cuts So Far This YearBostic, who is not a voting member of the central bank’s rate-setting Federal Open Market Committee (FOMC), said the current period marked by economic uncertainty is "no time for significant shifts in monetary policy."The next FOMC meeting is July 29-30. Trump’s 90-day pause on the sweeping "reciprocal tariffs" he announced on April 2 is set to expire on July 9. Treasury Secretary Scott Bessent told FOX Business’ "Mornings with Maria" on Thursday that he expects "a flurry of deals" to be announced before next week’s deadline.Read On The Fox Business AppInflation readings from March, April and May 2025 showed levels of inflation hovering slightly above the Fed’s 2% target, which Bostic said showed tariffs "had not substantially affected consumer prices." Yet Bostic said he believed rosy data in recent months reflected "firms’ strategies to delay substantive price increases" until final tariff rates are set, rather than evidence that the economy had staved off tariff-related price pressures.Trump's Tariff Policies Reshape Online Shopping Habits, New Report FindsThe Atlanta Fed chief’s comments at a lecture in Frankfurt, Germany, came hours after Thursday’s June unemployment report showed that hiring for the month outpaced expectations, with the economy adding 147,000 jobs and the unemployment rate ticking down to 4.1%.The Fed has held interest rates steady since December 2024, when the central bank cut its target range by a quarter of a percentage point amid what then seemed to markets like a rate-cutting cycle that was bound to continue.Federal Reserve Chair Jerome Powell said Tuesday that he believes the central bank would have continued to cut interest rates had tariffs not been implemented.Powell said Tuesday that he believes the Fed would have continued to cut interest rates had tariffs not been implemented, adding that "we went on hold when we saw the size of the tariffs."Terms and Privacy PolicyPrivacy & Cookie SettingsMore InfoS&P Futures6,292.50 -31.75 (-0.50%)Dow Futures44,952.00 -146.00 (-0.32%)Nasdaq Futures22,926.50 -136.00 (-0.59%)Russell 2000 Futures2,245.60 -17.10 (-0.76%)VIX17.48 +1.10 (+6.72%)Gold3,320.50 -22.40 (-0.67%)PortfolioSign in to access your portfolioSign inTop gainersBMNR Bitmine Immersion Technologies, Inc. 135.00 +76.50 (+130.77%)RUN Sunrun Inc. 10.50 +1.51 (+16.80%)TRIP Tripadvisor, Inc. 17.50 +2.51 (+16.74%)DDOG Datadog, Inc. 155.15 +20.14 (+14.92%)SYM Symbotic Inc. 47.91 +5.71 (+13.53%)Top losersLEN Lennar Corporation 110.12 -4.69 (-4.09%)LEN-B Lennar Corporation 105.62 -4.37 (-3.97%)ESGRP Enstar Group Limited 19.45 -0.79 (-3.91%)HOOD Robinhood Markets, Inc. 94.40 -3.58 (-3.65%)BG Bunge Global SA 78.44 -2.95 (-3.62%)Most activeLCID Lucid Group, Inc. 2.1600 +0.1100 (+5.37%)NVDA NVIDIA Corporation 159.34 +2.09 (+1.33%)INTC Intel Corporation 22.49 +0.61 (+2.79%)F Ford Motor Company 11.81 +0.04 (+0.34%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)Earnings eventsTrending tickersNQ=F Nasdaq 100 Sep 25 22,926.50 -136.00 (-0.59%)TSLA Tesla, Inc. 315.35 -0.30 (-0.10%)ES=F E-Mini S&P 500 Sep 25 6,292.50 -31.75 (-0.50%)YM=F Mini Dow Jones Indus.-$5 Sep 25 44,952.00 -146.00 (-0.32%)BTC-USD Bitcoin USD 109,161.56 +1,019.66 (+0.94%)Top economic events