2025-12-16 20:07:00
Comments in an essay from Bostic:
- continues to view price stability as the most pressing risk facing FOMC
- it is unclear whether the labor market is significantly out of balance
- Expects inflation to remain above 2.5% even at the end of 2026.
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Sees little to suggest price pressures will dissipate before mid-to-late 2026 at the earliest.
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“Aggressive monetary policy response” is not warranted for current labor market conditions.
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Moving policy near or into accommodative territory risks exacerbating inflation and untethering expectations.
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Employment market is, at best, moving sideways; likely conditions are softening but not at a negative inflection point.
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GDPNow model estimates for Q3 are holding north of 3%; does not view severe downturn as likely.
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Notes that the recent Dec cut vote included three dissents; calls it a “close call.”
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Will retire in February 2026.
He highlighted this table with his inflation concerns.
This article was written by Adam Button at investinglive.com.
