Fed's Bostic (Retiring, Hawk) says sentiment in the district is one of cautious optimism, tariff effects will have a run through by the middle of 2026

• Cannot lose sight of inflationary concerns.
• Atlanta Fed colleagues say they will not see clear signals in the data before April or May.
• Inflation has been too high for too long.
• Need to keep policy restrictive to get inflation to 2%.
• Fed might need to lean more into non-official data. 

Bostic's remarks highlight a cautious, hawkish stance as he emphasizes ongoing inflation concerns and the necessity for the Fed to maintain restrictive policy. His comments suggest that the Fed remains vigilant ahead of potential inflation signals, which could influence interest rate expectations and market sentiment as we approach mid-2026. Expect currency and fixed income markets to react to this hawkish guidance, particularly if investors perceive a commitment to stringent inflation control.