MNI BRIEF: Bostic Sees Rates Patience Until Outlook Clearer

Atlanta Federal Reserve President Raphael Bostic said at an MNI Connect event Monday he will be patient when deciding the path of future interest rates and wants a clear view of the economy's reaction to tariffs and geopolitical turmoil before moving.

“I like to move in a direction when I know which direction to move in, and that for me would require more information than we have today,” Bostic said at the event in London. “I’ll want to make sure I have some confidence I know which direction the economy’s moving in.”

Tariffs alone are causing a lot of uncertainty because it's unclear how companies will pass on prices to consumers after stockpiling in advance of the levies, Bostic said, and the lack of clarity extends to budget policy and regulation. 

Officials learned from the 1970s “people don’t like the Fed bouncing around a lot,” Bostic said. “We actually have some luxury to be patient, because labor markets are actually quite solid in the U.S.,” he said. Bostic wants to be "absolutely sure" the inflation side of the mandate will be met, he said. (See MNI INTERVIEW: Fed To Cut Twice In 2025 On Weak Growth-Haslag)