Fed's Bostic Insists on Tightening: Inflation Will Remain Above 2.5% Until the End of Next Year

Jinse Finance reported that the soon-to-retire Atlanta Fed President Bostic stated in an article on Wednesday that the Federal Reserve should continue to focus on addressing inflation issues, and he expects elevated price pressures to persist for most of next year. Bostic also revealed that at the Fed's December policy meeting, he not only favored keeping interest rates unchanged, but also recommended maintaining this level throughout 2026, citing that economic tailwinds may continue to exert upward pressure on inflation. He wrote: "After weighing all considerations, I still believe that price stability is the clearer and more urgent risk. There are almost no signs that price pressures will dissipate before the middle to late 2026 at the earliest, and it is expected that even by the end of 2026, inflation will still be above 2.5%." Regarding the labor market, he stated that although labor demand is cooling, a severe labor market recession is not the most likely scenario.