Federal Reserve's Bostic: Inflation pressures intensify, supports keeping interest rates unchanged
Atlanta Federal Reserve President Raphael Bostic expressed support for maintaining interest rates unchanged, pointing out recent rising inflation pressures. He mentioned signs in the economy indicating intensified inflation pressures, noting that although the core inflation rate in June was below expectations, tariffs have begun to push up prices for certain goods. Bostic expressed concerns about future inflation trends and did not comment on Trump's reports regarding the dismissal of the Federal Reserve Chairman. Investors expect the Federal Reserve to resume interest rate cuts at the September policy meeting
According to the Zhitong Finance APP, Raphael Bostic, president of the Atlanta Federal Reserve, stated on Wednesday that he still supports keeping interest rates unchanged and noted that recent inflation data shows price pressures are rising.
Bostic said, "We see underlying signs in the economy indicating that inflation pressures are rising, which is indeed concerning." When discussing interest rates, he stated, "For now, I will wait and see."
The core inflation rate in the U.S. was below expectations for the fifth consecutive month in June, but the Consumer Price Index (CPI) report released by the U.S. Bureau of Labor Statistics also showed that tariffs are starting to push up prices for some goods.
Bostic remarked, "We may be at a turning point. Over the past few months, the inflation data has indeed performed very well, very close to target levels. But the recent CPI report has conveyed a different message."
Due to concerns that tariffs will push up inflation, Federal Reserve officials have refrained from taking any rate cut measures this year. Some policymakers have stated that tariffs will only lead to temporary price increases, but most are worried that their impact may be more lasting.
Bostic declined to comment on reports earlier on Wednesday regarding President Trump seeking to remove Federal Reserve Chairman Powell. Trump later denied these reports.
According to futures contract pricing, investors expect the Federal Reserve to resume rate cuts at the policy meeting in September
