Fed: More companies say that they cannot delay their response to tariffs – Raphael Bostic

The president of the Federal Reserve Bank (FED) of Atlanta, Raphael Bostic, appeared in the news on Tuesday, warning that more companies are prepared to begin to adjust their prices and employment numbers as US tariffs begin to take effect in the US economy The consequences before making any change in policy rates.

Outstanding aspects

Greater instability in the treasure bond market would add uncertainty. Adding even more uncertainty would cause more delays in policy changes while Fed seeks more clarity.

Market operation is not a risk today.

Certainty means that the rules for trade and other aspects of the economy are stable enough for people to make long -term spending and investment plans.

The US economy will experience a slowdown in the activity, but how it will be developed by the national level is difficult to say.

The Fed needs to be safer about the perspectives to feel comfortable with how monetary policy should change.

Companies say that demand is still strong enough to justify their current workforce, although they are developing contingency plans.

The balances of consumers are not as strong as they were three or four years ago, some have returned to levels prior to the pandemic, or perhaps even weaker.

There is much unknown about how consumers will respond to another round of inflation. Households can now be more sensitive to prices.

The current level of tariffs in the US is better than it was in its initial proposal, but still high enough to make it difficult to evaluate what will happen.