Federal Reserve Chairman Jerome Powell House Testifies before the Financial Services Committee.
Atlanta Federal Reserve Chairman Rafael Bstic warned on Thursday that he believes that the tariff is likely to be a long time. Inflation stretch Unlike the one -time spike in cost.
“Instead of a short and simple one-time innings in prices, as the standard textbook model would suggest,” Bstic said he expects a change in American trade policy with concurrent geopolitical development for “long-term of high inflation” over a year or more.
Amid increasing pressure from the President Donald Trump To loosen its monetary policy status on the fed, Basta from Tuesday supported the comments of Federal Reserve President Geom Powell that the central bank should wait to accommodate its policy stance as it continues to track how tariffs can affect prices.
Rafael Bstic, president of the Atlanta Federal Reserve, said he expects a change in American trade policy with concurrent geo -political development for “long periods of high inflation” over a year or more. (Photographer: via Valerie Plash / Bloomberg Getty Image / Getty Image)
Fed Chair Powell confirms tariff concerns
Bostic, who is not a polling member of the Central Bank’s rate-setting Federal Open Market Committee (FOMC), said the current period marked by economic uncertainty “is no time for significant changes in monetary policy.”
The next FOMC meeting is July 29-30. Trump’s 90-day break on “mutual tariff” announced on 2 April announced to end on 9 July. Treasury Secretary Scott Besent on Thursday told the Fox Business’s “Morning with Maria” that he hoped to announce before the next week’s deadline.
From March, April and May 2025, inflation reading showed inflation levels, which is slightly above this. 2% target of Fed, Joe Bick said that Tariff “did not greatly affect the consumer prices.” Still Bstic said that in recent months, Rosie data “reflected the strategies of firms” to delay the original price increase “until the final tariff rates are determined, but rather the economy had stopped the price pressure related to tariffs rather than evidence.
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Atlanta fed Chief’s comments in a lecture in Frankfurt, Germany, came a few hours after Thursday June unemployment report It has been shown that the expectations have been reduced by hiring for the month, 147,000 jobs in the economy and the unemployment rate have come down by 4.1%.
Fed has kept the interest rates stable since December 2024, when the Central Bank cut its target limit to a quarter of one percent point, which then looked in markets like a rate-cutting cycle that was bound to continue.
Federal Reserve Chairman Jerome Powell said on Tuesday that he believes that the central bank would continue to cut the interest rates, the tariff was not implemented. (Reuters/Amanda Andrade-Rodes/File Photo/Reuters Photos)
Powell said on Tuesday He believes that Fed would have continued the interest rate cut, the tariff was not implemented, saying that “we got caught in the grip when we saw the size of the tariff.”
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Bostic’s call for patience on monetary policy resulted in the assessment of the status of the Central Bank on Wednesday by Tom Barkin, president of the Richmond Federal Reserve.
In an interview with Fox Business, “The Claman Countdown,” Barkin has compared the efforts of Fed to “driving through fog” to the impact of tariff on the economy, used a metaphor to describe the difficulty in facing FOMC since March.
Bostic’s call for patience on monetary policy resulted in the assessment of the status of the Central Bank on Wednesday by Tom Barkin, president of the Richmond Federal Reserve. (Photographer: via Valerie Plash / Bloomberg Getty Image / Getty Image)
“You don’t know what the impact of policy is going to happen on the economy,” Barkin said. “And as long as there is no urge from the large environment, I think when you drive through the fog, it does, which is slowly gone.”
