Fed's Bostic: The Fed Still Needs to Focus on Inflation, Monetary Policy Must Remain Patient

Odaily News Fed's Bostic emphasized that monetary policy must remain patient. Bostic warned that the United States may be facing the risk of rising structural unemployment, a fundamental shift that cannot be fixed by interest rate adjustments alone. In response to this situation, the Fed is closely monitoring labor market slack across different groups. If unemployment stems from structural factors, attempting to correct it through significant interest rate cuts may inadvertently push inflation higher rather than create jobs. Despite encouraging improvements in productivity, Bostic maintains a hawkish stance on price stability. He cautioned against overly impulsive reactions to short-term economic "noise," believing that overreacting to immediate pressures could create more instability in the future. The Fed's top priority remains controlling inflation, and it must resist the urge to shift policy direction prematurely. (Jin10)