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Investing.com -- Federal Reserve Bank of Atlanta President Raphael Bostic reaffirmed Monday his expectation for a single interest rate cut in 2025, with three more cuts projected for next year.
Speaking at an event hosted by Market News International, Bostic said, "I’m still there," regarding his forecast for one rate reduction this year. He added that he has "penciled in three rate cuts next year."
Bostic emphasized that the central bank can afford to be deliberate in its approach to monetary policy decisions. "I think we actually have some luxury to be patient because labor markets are actually quite solid," he stated, adding that the Fed "has time to wait and see before acting on rates."
On the topic of tariffs, Bostic noted that advance warnings have enabled companies to manage the process, but uncertainty remains about the direction of trade policy. "There is still a lot of uncertainty where trade policy will go," he said, indicating that "it will take time before full clarity arrives."
The Atlanta Fed president expressed concern that tariff-related inflation could potentially influence expectations, calling it "an open question." He pointed out that "much of tariff pricing hasn’t worked itself into economy yet."
Bostic acknowledged that policy uncertainty extends beyond just trade issues, and emphasized that people generally prefer stability in monetary policy, stating that "people don’t like when monetary policy is volatile."
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