Fed’s Bostic Says Inflation Still Clearer, More Pressing Risk

Federal Reserve Bank of Atlanta President Raphael Bostic said policymakers should remain focused on addressing inflation, with elevated price pressures expected to persist through most of next year.

Bostic also revealed that at the Fed’s Dec. 9-10 policy gathering, he not only favored holding rates unchanged, but recommended keeping them level through 2026, citing economic tailwinds that could keep upward pressure on inflation. Bostic was not a voter on the Federal Open Market Committee this year, and a majority of voters at the December meeting ended up supporting a decision to lower rates by a quarter percentage point.

“After wrestling ...