Fed’s Bostic Warns Dual-Mandate Risks Rising Amid Policy Debate

Atlanta Federal Reserve President Raphael Bostic said the central bank is confronting risks on both sides of its dual mandate, arguing that recent economic data have heightened concerns about potential damage to the labor market even as inflation pressures persist. Bostic told CNBC on 1 August that policymakers are actively debating how restrictive current monetary settings are and whether further tightening is warranted. He characterised the environment as "very difficult," with trade-offs between safeguarding employment and containing prices becoming more acute in light of "today’s numbers," which he said increase the salience of employment risks.