Bostic Talks Career With Fed, Inflation Risk and Warsh

Summary

Michael McKee interviews Atlanta Fed President Raphael Bostic in an exit interview. Bostic describes cautious optimism among businesses and consumers, resilience to tariffs, and potential upside from tax stimulus, but stresses that inflation remains too high and the Fed must maintain a restrictive policy stance to reach 2%. He also discusses labor market turbulence, K-shaped consumer strain, Fed independence, Kevin Warsh's proposed regime change, balance sheet and QE policy, and Fed ethics rules.

• Atlanta Fed President Raphael Bostic speaks with Michael McKee ahead of his retirement.
• Bostic sees cautious optimism among businesses and consumers, with possible economic upside in 2026 from tariff adjustment and tax stimulus.
• He emphasizes inflation has been too high for too long and supports keeping policy restrictive to return to 2%.
• Labor market is described as turbulent with structural shifts, making data signals unclear until spring.
• Bostic discusses a K-shaped economy and financial strain among lower-income households.
• He rejects criticism of Fed mission creep and defends data-dependent, inclusive employment focus.
• Bostic comments on Kevin Warsh's proposed regime change, scarce reserves, QE, and balance sheet policy.
• He praises Jay Powell's leadership and addresses Fed ethics rules and independence pressures.