Fed's Bostic: The Fed does not need to cut interest rates now

News Brief

PANews reported on January 30th that Fed Chairman Bostic noted inflation and employment risks have largely reached equilibrium, with labor market worries significantly diminishing compared to previous months. However, he believes inflation progress over the past two years remains disappointingly sluggish; therefore, the Fed must maintain vigilance while monitoring concrete evidence that price pressures are genuinely returning toward the 2.00% target. In Bostic's view, no compelling case exists for immediate rate cuts—instead, policymakers should adopt a measured, patient approach to monetary adjustments. Additionally, he anticipates tariff-related impacts will persist throughout early 2026. Regarding Warsh, Bostic acknowledged limited personal familiarity but indicated he's heard positive assessments of his capabilities.

PANews reported on January 30th that, according to Jinshi News, Federal Reserve Chairman Bostic stated that current inflation and employment risks are largely balanced, and the downside risks to employment have significantly diminished compared to before. However, inflation progress has stalled over the past two years, and the Fed still needs to remain vigilant, hoping to see clear evidence of inflation returning to the 2% target. Bostic believes the Fed does not need to cut interest rates at present and should remain on the sidelines and adopt a more patient approach to interest rates. Furthermore, he expects the impact of some tariff policies to continue until the first half of 2026. Regarding Warsh, Bostic said he doesn't know him well, but has heard he is "quite thoughtful."