Fed's Bostic: Bold moves "in any direction" are not prudent

Uncertainty over the Trump administration's tariffs and other policies has brought the US economy to a "great standstill", according to Mr. Bostic, who advised the Fed to hold its ground until it became clearer. "Where the economy is going to land depends critically on the details of where policy is going to land," he said. "Because we don't know that yet, and that's another reason why I feel it would be imprudent to be too bold in policy action in either direction." Mr. Bostic said tariffs could push up prices, meaning it could take longer than he previously thought to bring inflation back down to the Fed's 2 per cent target, possibly by 2027. At the same time, economic growth is likely to slow, he said, with GDP growth set to exceed 1 percent this year but less than half its recent pace. Bostic did not say whether he still believes the Federal Reserve will cut interest rates once this year, a view he expressed in March.