Fed’s Bostic:

The president of the Bank of the Federal Reserve (FED) of Atlanta, Raphael Bostic, said during the Morning Market session in the morning that the Fed still has a long way to go to reach its 2%inflation mandate, which complicates market expectations on future feat cuts.

Key aspects

The variety of potential results has increased.

The limits of what I thought could be possible have been overcome.

The labor market maintains full employment.

We still have a way to go on inflation.

There is still a long way to reach the inflation mandate of 2%.

Fed cannot make bold movements in any direction.

There is a dense fog in front, the economy is in a great pause.

Companies and homes lack trust to make significant investments.

Tariffs imply that prices are likely to increase, so the time to achieve the inflation objective is probably delayed.

Tariffs will exert upward pressure on prices.

Bostic still projects economic growth of more than 1% this year.

Where the economy lands depends on the details of government policies.

Bold movements with politics are not prudent.