Federal Reserve Bank of Atlanta President Raphael Bostic speaking on monetary policy in a moderated conversation hosted by Emory University, in Atlanta, Ga:
- Right now range of possible outcomes has multiplied
- Boundaries of what I thought could be possible have been blown up
- Labor market is effectively at full employment
- Says inflation still much higher than target
- Not in a position to move boldy in any direction
- Need more clarity
- the fog has gotten really thick
- economy in a big pause
- businesses and households not confident on making big investments
- tariffs mean prices are likely to go up, so the timing of reaching the inflation target is likely to be pushed out
- see growth over 1% this year
- where economy will land depends on where administration policy lands
- moving boldly with policy wouldn't be prudent
- Reduction in immigration is affecting labor market for construction and some sectors, but no broad effect
- Boosting manufacturing in the US will take more than putting up walls, would take engineering
These are confronting remarks from Bostic.
On the one hand he is wary of cutting:
- labor market is effectively at full employment
- inflation still much higher than target
And on the other hand is is aware of the damage being done to the US economy::
- economy in pause
- hesitancy on big investments
