Fed's Bostic (2027 voter) says inflation still quite far from where we need to be; those are not characteristics that suggest to me a passive posture is appropriate, still need to be restrictive

• As they go through 2026 the economy is likely to get stronger and could put more upward pressure on prices and that is something they have to watch.
• Labour market has weakened, but it is not clearly weak.
• In a difficult environment to see what might be coming in the economy and inflation.
• Should not expect there to be 100% consensus on everything.

Bostic's remarks indicate a continued hawkish stance from the Fed, suggesting that inflation requires vigilance and further restrictive measures despite some signs of labor market weakness. His emphasis on the economy strengthening through 2026 implies that the Fed may not ease policy anytime soon, potentially supporting a stronger USD as markets anticipate sustained interest rate levels. This is particularly relevant for fixed income and forex markets as traders adjust their expectations accordingly.