Atlanta Fed Prez Raphael Bostic spilled the beans on CNBC yesterday, saying he’s only down for one rate cut this year. The bigwigs at the central bank are trying to juggle the possibility of inflation creeping up against the fear of a recession. In March, the Fed hinted at two rate reductions in 2025, but Bostic threw a curveball by pointing out that the tariffs have been way higher than what they initially expected at the beginning of the year.
Bostic spilled the tea on “Squawk Box,” saying, “I’m thinking it’s gonna be a hot minute before things settle down. So, I’m more inclined towards just one cut this year. Gotta give it time and see how things pan out, ya know?” The Fed’s got a double duty to keep employment high and prices stable. Concerns about inflation flared up recently when a survey showed that folks in the US are sweating over the tariffs potentially sending prices through the roof. When asked which part of the mandate he’s sweating over more, Bostic honed in on the possibility of prices going up.
“I’m sweating bullets about inflation, mainly ’cause expectations are getting out of hand. Gonna make our job a whole lot trickier,” he said. Bostic isn’t on the voting squad of the Federal Open Market Committee, the gang that decides on interest rates. The tariff saga has had more twists and turns than a soap opera since Trump moved into the White House. The Prez dropped tariffs on almost every trading partner on April 2, then hit the brakes for 90 days, setting the tariff rate for most countries at 10%. There’s also a 90-day ceasefire with China, but the tariffs are still higher than when Trump first stepped in.
Bostic pointed out that even with the lower tariffs, they still pack a punch economically. So, if you’re into the stock market, keep an eye on these deets from CNBC PRO. Berkshire Hathaway owns a whopping 5% of the Treasury-bill market while Buffett chills out for his next big move. Tom Lee’s banking on a ‘V-shaped’ comeback and is betting big on some ‘left for dead’ stocks. JPMorgan is shouting from the rooftops to buy this pharma stock after they announced some cost-cutting moves. Dan Ives is saying that the progress in US-China trade talks is like a dream come true for the tech industry, with Nvidia coming out as the top dog.
