Atlanta Fed Pres. Bostic is speaking and says:
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Adjustment of prices to trade and other policies will not be short or simple and could take a year or more.
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Labor market remains healthy; do not see signs of serious deterioration.
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The U.S. is likely to see a period of higher inflation readings.
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It is not the right time to shift monetary policy given the uncertainty.
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A “wait and see” approach on interest rates remains appropriate, particularly given the economy’s resilience.
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There is a risk that high inflation could begin to influence consumer psychology.
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Fed should consider making a commitment to stable inflation expectations more explicitly in its framework.
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Businesses are delaying hiring and investments; expect demand to stagnate or decline if costs continue rising.
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Recent sanguine inflation readings are a result of businesses delaying price increases to get clarity on final tariff levels.
This article was written by Greg Michalowski at www.forexlive.com.
