Atlanta Fed’s Bostic Sees Inflation Building, Prefers Holding Rates Steady

Atlanta Federal Reserve President Raphael Bostic said he would keep U.S. interest rates on hold, citing signs that price pressures are re-emerging after several months of moderation. Speaking on 16 July, Bostic said the latest consumer-price readings suggest the economy may be at an “inflection point,” warranting patience before contemplating any rate cuts. Bostic’s stance marks a continuation of his view expressed since late June that additional rate increases are unnecessary, even as he expects inflation to remain higher for longer. He reiterated that while economic momentum has cooled, he does not foresee a sharp downturn and sees no evidence that inflation will re-accelerate in spikes. The Atlanta Fed chief also pointed to the 145% tariff on Chinese goods that took effect in April, saying companies are employing “varied strategies” rather than textbook price increases to offset the higher costs. Those adjustments, he noted, add uncertainty to the inflation outlook and reinforce the case for holding policy steady until clearer trends emerge.