Federal Reserve's Bostic Cautions Against Hasty Policy Moves Amid Economic Uncertainty

According to Odaily, Federal Reserve official Raphael Bostic has expressed concerns that uncertainty surrounding tariffs and other policies under U.S. President Donald Trump's administration has led to a significant slowdown in the U.S. economy. Bostic advised that the Federal Reserve should refrain from making any bold policy moves until the situation becomes clearer. Bostic emphasized that the future of the economy heavily depends on the specifics of these policies, which remain uncertain. He noted that tariffs could lead to higher prices, potentially delaying the return of inflation to the Federal Reserve's 2% target until 2027, longer than he previously anticipated. Additionally, Bostic warned of a potential slowdown in economic growth, predicting that this year's GDP growth rate will exceed 1% but will be less than half of the recent growth rates. He did not comment on whether he still believes the Federal Reserve will cut interest rates once this year, a position he had previously stated in March.