Bostic in the Federal Reserve sees only one rate reduced in 2025, as Trump requires immediate procedures again

Rafael Postic, president of the Federal Reserve in Atlanta, is back away from the idea of ​​price discounts this year. Now he says it is likely that there is only one reduction in 2025. It caused it? Definitions.

He believes that new definitions come out of inflation and make it difficult to reduce prices. This drives everything back, including the duration of which rates remain high. In an interview with Bloomberg on Monday, Postek He said:

“I moved to one of them because I think we will see inflation is very rugged and does not move significantly and clearly to the target of 2 %.”

BOSICIC is now expected to reach the target of 2 % at one time in early 2027. This is late for what federal reserve officials believed in September when they were aiming at 2026. It is now in line with the latest FBI’s expectations.

The central bank also said last week that it still sees the rate of half of the point this year. This means discounts of 25 basis points, such as December expectations. But this is just the mediator. A closer look shows that more officials now expect only one or nothing at all in 2025.

Trump increases pressure on the federal reserve now

While Postek is separated, Trump does not wait. Pay the federal reserve again on Monday to reduce interest rates. It put it during the cabinet meeting, saying: “In general, prices decrease, energy prices decrease, and I hope that it will reduce interest rates in the Federal Reserve, and then you can see interest rates decrease.”

Last week, Trump also posted on the Internet that the Federal Reserve should start cutting now. He said that if the Federal Reserve does not act quickly, its planned tariff will strike more strongly. He is also not deceived – his team is preparing to launch a new wave of tariffs on April 2. Jerome Powell, head of the Federal Reserve, said these definitions are already commented on the expectations of the Federal Economic Reserve. The entire situation is now a rope tightening. Trump wants discounts in rapid interest rates before moving directly. Postek and others at the Federal Reserve stop, pending low inflation.

Powell last week also spoke. He said that the federal reserve will remain at the present time. He also repeated that the economy is still on solid ground, although consumer feelings are not completely great. Powell said the price jump from the definitions should be temporary. This is his word – “temporary”. Yes, the same word used by the federal reserve during the epidemic that turned into a mistake. This makes it all strange. They use “temporarily” again like it means something different this time.

Powell and others also ignore the surveys of the Michigan University of Michigan. These showed long -term inflation expectations that rise. But Powell brushes that. He said that other inflation indicators did not really move, so it is not worried.

Postek warns that inflation will remain chaotic and the prices will remain high

Postec does not seem very confident either. He admitted that this inflation problem is chaotic and not moving the way they want. He said: “Since this is pushed back, I think the appropriate path of politics will also have to push it to reach us to this neutral level.” So do not expect any quick changes.

He also talked about the effect of definitions. Postek said the definitions usually cause an increase in one time, but now it may be worse. The inflation was already high, so people are now more sensitive. “We have just passed a period of high inflation, so they are in the mind of the consumer,” Postek said. “I am afraid to be more sensitive to the highest prices today than they were in the past, but they may not do that, and we just have to see how it is shown.”

Another thing that Postek said is that any future movements by the Federal Reserve may be greater than usual. Since they stop now, the next amendment may need to be more aggressive. But he also said he wanted to wait and see before doing anything. The federal reserve does not want to behave very soon, then reversing the cycle if the economy turns again.

Again in February, Postek has already said that the rates need to be restricted until the inflation decreases more. At a policy meeting last week, the Federal Reserve decided to slow down the speedy reduction of its public budget.

Starting in April, they will only allow only $ 5 billion of treasury bonds every month, instead of $ 25 billion. This is a major change in the pace of quantitative tightening. Bostic supports it. He wants the wind to continue slowly until it is time to stop it completely. He does not support his acceleration again later.

Postek also said it was open to selling securities -backed by mortgage, but only if the mortgage market or money markets did not spoil. This part is still just thinking – nothing has decided yet.

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