Fed's Bostic: Central bank must maintain attention on inflation – Reuters

Atlanta Fed President Bostic Shares Insights on Inflation and AI Transition

During an exclusive conversation with Reuters, Raphael Bostic, President of the Atlanta Federal Reserve, emphasized that despite improvements in productivity, the central bank must remain vigilant about inflation. He cautioned that addressing immediate concerns too quickly could create larger challenges in the future.

Main Points

• Bostic noted that the shift toward artificial intelligence presents complexities that may be difficult for the Federal Reserve to fully grasp.
• He warned that the United States could be moving toward a period of persistently higher unemployment, a trend the central bank may not be able to reverse.
• The Federal Reserve continues to prioritize monitoring economic indicators across various demographic groups, as this information is crucial for assessing unused capacity in the labor market.
• Bostic expressed hope that the measures safeguarding the Federal Reserve’s independence will remain intact.
• He also mentioned that if Warsh is confirmed as Fed chair, he will need to establish strong working relationships with both staff and fellow policymakers.