Fed’s Bostic Sees One Cut in 2025 as Tariff Effects May Persist

Federal Reserve Bank of Atlanta President Raphael Bostic said he still views one interest-rate cut as likely this year, and reiterated there are reasons to be skeptical that the inflationary effects from tariffs will be temporary.

“This question about whether tariffs are a one-time thing, or whether they’re going to be more persistent in their effects and might even cause structural changes, I think is perhaps the most important question that we have today,” Bostic said Thursday during a virtual discussion organized by the Florida Institute of CFOs.

Atlanta Fed President Raphael Bostic.

Photographer: Natalie Behring/Bloomberg

The Atlanta Fed chief said there are reasons to be “somewhat ...