Atlanta Fed Chair Raphael Bostic told CNBC on Monday that he currently prefers only one rate cut this year as the central bank tries to balance potential upward pressures on inflation with worries of a recession.
The U.S. central bank released projections in March that pointed toward two quarter-point rate cuts in 2025. However, Bostic said Monday that the tariffs have been larger than the Fed expected at the start of the year.
“For me right now, I’m expecting it’s going to take a bit longer for that to sort out. … I’m leaning much more into one cut this year, because I think it will take time, and then we’ll sort of have to see,” Bostic said on “Squawk Box.”
The Federal Reserve has a dual mandate to support maximum employment and stable prices. Worries about inflation flared up again last week when a consumer sentiment survey showed Americans were worried about the potential of tariffs to push inflation higher. When asked about which side of the mandate he is more worried about, Bostick focused on a potential rise in prices.
“I worry a lot about the inflation side, and mainly because we’re seeing expectations move in a troublesome way. … That will make our job harder,” he said.
Bostick is not currently a voting member of the Federal One Market Committee, which sets interest rate policy.
