Fed's Bostic (2027 voter, retiring) says the outlook for H1 of 2026 is for strong economic performance, inflation to stay high and a source of concern; outlook for 2026 is continued resilient economy
Importance
Level 1
- No one is projecting worsening of labour market
- By midyear, will have reached an equilibrium with economy.
- Fed chair job is a very large job; to have policy go in a direction you want, have to build Trust with committee, show wisdom, and guidance.
- It's a huge undertaking for Warsh, and he's got a tall task.
- We are not through with inflation from tariffs.
- Premature to say that the inflation job is done.
- Have no rate cuts for 2026 pencilled in.
- One or two cuts would put them at neutral.
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