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Fed's Bostic sees one rate cut in 2025 because it will take 6 months to assess tariffs' economic impact

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The size and scope of the tariffs caught the Fed and businesses off guard, Bostic said.
In an article published on May 19, 2025, by Fortune, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, expressed his outlook on the U.S. economy, suggesting that the Federal Reserve might implement only one interest rate cut for the remainder of the year. Bostic's cautious approach is influenced by concerns over potential inflation spikes, which could be exacerbated by former President Donald Trump's proposed tariffs. These tariffs, if enacted, could increase costs for consumers and businesses, thereby putting upward pressure on prices. Bostic emphasized the need for the Fed to remain vigilant and data-dependent in its decision-making process to manage economic stability effectively.

Read the Full Fortune Article at:
[ https://fortune.com/2025/05/19/fed-outlook-bostic-one-interest-rate-cut-trump-tariffs-inflation/ ]