Fed's Bostic: Not in a Hurry to Cut Rates, Cannot Ignore Inflation Risks from Tariffs

BlockBeats News, June 21st, Federal Reserve's Barkin said on Friday that given the unresolved risk of new tariffs potentially boosting inflation and with the U.S. labor market and consumer spending remaining strong, there is no rush to cut interest rates. In an interview with Reuters, Barkin pointed out, "I don't think this data is going to make us rush. ... I am very aware we have not hit our inflation target in four years."

Businesses in Barkin's region (Richmond) still expect prices to rise later this year as new tariffs take effect, and import tariffs may rise further in the coming months. Additionally, he said the unemployment rate remains at a low of 4.2%, and there doesn't seem to be signs of significant layoffs by businesses, which would undermine another goal of the Fed to maintain maximum employment.

Given the uncertain outcome of the tariffs, Barkin said, "I have to say that the response we have to make remains to wait and see. To wait and see is not to hit the brake. It's just not to hit the gas."