Atlanta Federal Reserve President Raphael Bostic said companies could need as long as 12 months to pass higher costs from the 145% U.S. tariff on Chinese goods into consumer prices, cautioning that the central bank cannot simply "look through" the policy if it materially lifts inflation. In a CNBC interview, Bostic noted that while the labour market is now nearer to the Fed’s maximum-employment goal, inflation remains above target and could be pushed higher as firms gradually reprice goods affected by the tariff. The potential drag complicates the outlook for monetary policy, he added, underscoring that officials will monitor how quickly price adjustments feed into headline inflation.