Fed’s Bostic: Maintaining a tight policy is necessary as inflation remains elevated

Atlanta Fed President Bostic Shares Outlook on Inflation and Economy

During a meeting with the Metro Atlanta Chamber's Board of Directors, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, expressed his view that inflationary pressures are likely to persist throughout the year. He also noted that numerous companies continue to reflect tariffs in their pricing strategies.

Highlights from Bostic's Remarks

• Many companies are still passing tariff costs onto consumers through higher prices.
• Bostic anticipates that inflation will remain elevated into 2026.
• He projects the U.S. economy will see GDP growth exceeding 2% in 2026.
• Inflationary forces extend beyond tariffs, with sectors like healthcare also contributing.
• While the labor market is not currently extremely tight, it is also not considered slack.
• Bostic emphasized the need for continued restrictive monetary policy, citing persistently high inflation.