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

• 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.

Fed's Bostic presents a generally hawkish view on the economic outlook for 2026, emphasizing that inflation remains a concern and suggesting no rate cuts are currently anticipated for that year. His comments indicate a belief in persistent economic resilience alongside inflationary pressures, which may imply a cautious approach to monetary policy moving forward. This suggests that market participants should brace for a more extended period of elevated rates, impacting risk sentiment and potentially supporting the USD in the forex markets.