On Tuesday, the Atlanta Fed President Raphael Bostic released a blog post called FOMC’s credibility on inflation could be at stake, at the Atlanta Fed website.

Atlanta Fed President sees persistent price pressures, favors steady policy

Bostic noted that the jobs report was a mixed picture and that it did not change the outlook and that he would prefer to leave rates unchanged at the last Fed meeting. He said that “multiple surveys” are suggesting that there are higher input costs and that firms are determined to preserve their margins by increasing prices.

He added that “Price pressures are not just coming from tariffs, Fed should not be hasty to declare victory,” and that he sees GDP for 2026 at around 2.5%.

Key highlights:

Fed's Bostic tells reporters that Tuesday's jobs report was a mixed picture and did not change the outlook much.

Fed's Bostic: Weakness in job growth may stem from many factors, some of them structural, with executives laser-focused on headcount.

Fed's Bostic: I would have preferred to leave monetary policy where it was at the last Fed meeting.

Fed's Bostic: Multiple surveys are sending the same message of higher business costs and firms are determined to preserve their margins by raising prices.

Fed's Bostic: I was not worried about the outcome of the Fed regional bank reappointment process.

Fed's Bostic: I need to see progress on services inflation moving forward to gain confidence that Fed's 2% target can be achieved.

Fed's Bostic: At this point, most businesses feel technology will be close to jobs-neutral, allowing workers to be redeployed.

Fed's Bostic: Given the complexity of the moment, I would be surprised if there was consensus at the Fed.

Fed's Bostic: Price pressures are not just coming from tariffs, Fed should not be hasty to declare victory.

Fed's Bostic: For 2026 projections, I did not include any rate cuts, as I feel the economy will be stronger with about 2.5% GDP growth, requiring policy to remain restrictive.