The Federal Reserve's Bostic: More inclined to only cut interest rates once this year, tariff details are crucial.

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Bostic's latest views on interest rate cuts in 2025
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Raphael Bostic, the President of the Federal Reserve Bank of Atlanta, stated on May 19 that he expects the Federal Reserve may only cut rates once in 2025. This view reflects his comprehensive assessment of the current economic situation and future uncertainties.
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The impact of tariff policy on interest rate cut expectations
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Bostic pointed out that the number of rate cuts this year will depend on the development of economic conditions, especially the details of tariff policies. He believes that the uncertainty brought by tariff policies and their potential impact on inflation require The Federal Reserve (FED) to take more time to assess their overall impact on the economy. Therefore, he tends to act cautiously, opting for a single rate cut only when necessary, rather than hastily implementing more aggressive rate cuts.
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Economic outlook and inflation pressures
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Bostic emphasized that although the U.S. economy may slow down this year, it will not fall into recession. He expects U.S. economic growth to be between 0.5% and 1% this year, mainly due to uncertainty in the economic outlook and fluctuations in consumer confidence. Additionally, he mentioned that tariff policies could pose upward risks to inflation, which would constrain the current policy stance of The Federal Reserve (FED).