Fed officials urge patience on rate decisions amid tariff uncertainty

On Thursday, the Federal Reserve Chairman of Atlanta Rafael Bustic warned that he believed the customs tariff is likely to cause a long extension of inflation rather than once in costs.

Instead of “a single, short and time -time transformation in prices, as standard textbook models indicate,” Bustic said he expects changes in American commercial policy as well as simultaneous geopolitical developments to “a longer period of high inflation” over a year or more.

Amid pressure from President Donald Trump on the federal reserve to alleviate its position in monetary policy, Bustic firmly supported the comments of the Federal Reserve Jerome Powell from Tuesday that the central bank should wait to control its position on the policy while continuing to track how the customs tariff affects prices.

The President of the Federal Reserve, Powell, confirms the concerns of the tariff granted for interest rate discounts so far this year

Postek, who is not a member of the voting committee of the Central Bank of Central Bank (FOMC), said the current period that was characterized by economic uncertainty is “no time for great transformations in monetary policy.”

The next FOMC meeting is July 29-30. Trump’s 90 -day pause on the “mutual tariff” announced on April 2 is scheduled to end on July 9. Treasury Secretary Scott Payet told Maria on Thursday that he expected a “wave of deals” before the deadline for the next year.

Inflation readings from March, April and May 2025 showed that inflation levels are 2 % over the goal of the Federal Reserve, which Postek said the definitions “did not significantly affect the prices of consumer.” However, Postek said he believed that pink data in recent months reflected “corporate strategies to delay price increase” until the final tariff rates are determined, rather than evidence that the economy has led to tariff prices.

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The comments of the Federal Reserve Chairman in Atlanta came in a lecture in Frankfurt, Germany, hours after the unemployment report on Thursday in June that employment per month surpassed expectations, as the economy added 147,000 jobs and unemployment rates to 4.1 %.

The Federal Reserve has maintained fixed interest rates since December 2024, when the central bank reduced its target by a quarter of a percentage point in the midst of what later looked like markets such as the price cutting course that had to continue.

Federal Reserve Chairman Jerome Powell said on Tuesday that he believed that the central bank would continue to reduce interest rates if customs duties were not implemented. (Reuters/Amanda Andradi Rhodes/Photo/Reuters photos)

Powell said on Tuesday that he believed that the Federal Reserve would have been to reduce interest rates if customs duties were not implemented, adding, “We were suspended when we saw the size of the definitions.”

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Postek invitations have been patience for monetary policy movements the evaluation of the Federal Reserve Chairman at Richmond Tom Parkin for the central bank’s position on Wednesday.

In an interview with Fox Business.

Postek invitations have been patience for monetary policy movements the evaluation of the Federal Reserve Chairman at Richmond Tom Parkin for the central bank’s position on Wednesday. (Photographer: Valerie Blash / Bloomberg via Getti Imhasers / Getty Pictures)

“You don’t know the impact of politics on the economy,” Parkin said. “As long as there was no urgency from the greatest environment, I think one does what one does when you lead through fog, which is slowly.”