Fed's Bostic (Retiring) says inflation is too high and needs to come down, want clear evidence of a return to 2%, via CNBC

• Fed should be more patient for now.
• Still think we need to be somewhat restrictive.
• A case can be made that inflation and job risks are now in balance.
• Rate decision involves 12 people.
• Two cuts in 2026 is not the baseline case.

• Still have ways to go on inflation, need to be vigilant.
• Still tariff effects on prices that have yet to come through.
• Expects inflation to be stubborn.

• Downside risk to labour market is much further away than it was.

• Do not know Warsh well, but head he is quite thoughtful.
• Independence of the Fed is always a concern.

• Balance sheet grew in response to crisis, but should back out of MBS.
• Current balance sheet rise is appropriate and needs to grow with the economy.

Bostic emphasizes the need for the Fed to remain vigilant on inflation, suggesting that while risks are somewhat balanced, clear evidence of a return to the 2% target is necessary. His comments indicate a cautious stance, reinforcing a potentially patient approach to future rate decisions, with implications for the dollar and broader fixed income markets as the Fed navigates inflationary pressures and growth dynamics.