The Federal Reserve's Bostic advocates adhere to austerity: inflation will be higher than 2.5% by the end of next year

The Fed should continue to focus on tackling inflation, with elevated price pressures expected to persist through much of next year, the retiring Atlanta Fed president said in an article published on Wednesday. Bostic also revealed that at the Fed's December policy meeting, he was not only leaning towards keeping interest rates on hold, but recommended that they remain at that level throughout 2026, citing the possibility that economic tailwinds could continue to put upward pressure on inflation. "After weighing all considerations, price stability remains the clearer and more immediate risk," he wrote. "There is little indication that price pressures will dissipate before mid-to-late 2026 at the earliest, and inflation is expected to remain above 2.5 percent even through the end of 2026." On the labor front, he said that while labor demand is cooling, a severe labor market recession is not the most likely scenario.