Fed's Bostic: Bold moves 'in either direction' would be imprudent

Odaily News Federal Reserve Chairman Bostic said uncertainty surrounding the Trump administration's tariffs and other policies has brought the U.S. economy to a "big pause," and he suggested the Fed should stay put until the situation becomes clearer. "Where the economy will land depends critically on the details of where policy lands," he said. "Because we don't know yet, that's another reason why I think it would be imprudent to take policy actions that are too bold in any direction." Bostic said tariffs could push up prices, meaning it could take longer than he previously thought, possibly until 2027, for inflation to fall back to the Fed's 2% target. At the same time, he said, economic growth is likely to slow, with GDP growth this year to be above 1%, but less than half of its recent pace. Bostic did not say whether he still believes the Fed will cut interest rates once this year, a view he expressed in March. (Jinshi)