Fed's Bostic: Key for the Fed is if the tariff price rise is more persistent

Fed's Bostic: Key for the Fed is if the tariff price rise is more persistent

• Atlanta Fed Pres. Rafael Bostic is speaking

Atlanta Fed Pres. Rafael Bostic is speaking and says:

• Outlook is for the economy to continue slowing, but also expect real uncertainty about what that means for jobs and inflation

• Firms still in wait and see pattern around employment

• Likely to be upward pressure on prices for six to 12 months, that puts pressure on the Fed

• The most important question for the Fed is whether tariffs will shift prices once or more persistently

• Policymakers would not respond to a one-time price shift, but there are compelling reasons to be skeptical

• That way tariffs are unfolding make it hard to pin down the impact, and suggest the episode will last much longer than people anticipated

• Businesses are using a mix of approaches in changing prices, ongoing discussion could shift expectations

• Feel businesses will continue adjusting to tariffs well into next year.

• Fundamentals of the economy are still quite solid