Federal Reserve Bank of Atlanta President Raphael Bostic has warned that upward pressure on prices could increase in the coming period, highlighting the need for close monitoring of inflation trends.
According to ChainCatcher, Bostic noted that while inflation has shown signs of easing compared to previous peaks, underlying risks remain. Factors such as strong consumer demand, labor market tightness, and potential supply-side disruptions could contribute to renewed price pressure.
Bostic emphasized that the Federal Reserve must remain cautious when assessing future policy moves. Any unexpected acceleration in prices could complicate efforts to bring inflation sustainably back to the central bank’s target.
The comments suggest that policymakers are not yet ready to declare victory over inflation. Market participants are likely to watch upcoming economic data closely, especially inflation and employment figures, as these will play a key role in shaping expectations around interest rate decisions in the months ahead.
