Fed: The best approach to monetary policy is patience – Raphael Bostic

The president of the Atlanta Federal Reserve, Raphael Bostic, indicated that a robust economy gives the US Central Bank the opportunity to consider the effects of tariffs on inflation and growth, while expressing its opening to the possibility of a cut of interest rates later this year.

Outstanding statements

• The best monetary policy approach now implies ‘patience’.
• Given the ‘healthy’ economy, the Fed has time to see how uncertainty is resolved.
• ‘I am not in a hurry to adjust our policy position.’
• He still sees a possible path to an interest rate cut this year, depending on the economy.
• ‘It is a difficult decision to say if the Fed would cut rates in the absence of commercial uncertainty.
• He says he is ‘very cautious’ when jumping in feats.
• He says he needs to see more progress in reducing inflation before supporting a rate cut.
• He still does not declare victory over inflation.
• He says that there is still a long way to go in inflation; The basic prices are ‘still a problem’.
• It is not clear at this time how tariffs will affect inflation perspectives.
• Hard data still does not reflect the ‘most gloomy’ mood.
• The labor market seems healthy generally, with some signs of weakness.
• There are no signs that tariffs have increased inflation.
• The recession is not in your forecast at this time.