ATLANTA — Complicated - that’s a word that kept coming up in the Atlanta Federal Reserve President Raphael Bostic’s conversation with Channel 2’s Linda Stouffer.
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Businesses, consumers and economists are trying to manage inflation and a weakening national jobs market.
The Atlanta Fed President says many businesses in Georgia and the Southeast have been trying to absorb the cost of tariffs, instead of passing that onto consumers. But now that’s getting more difficult.
“My forecast and projections - we’re going to see some increases in prices into the first quarter of 2026,” Bostic said.
The Federal Reserve lowered interest rates a quarter-point last week, to 4.1%. That impacts the rates banks charge consumers for auto loans and credit cards.
The White House is calling for more rate cuts this year.
Bostic says he’s concerned about balancing inflation and jobs.
“If the data stay exactly where they are, I’d say we probably need to wait, because inflation is still quite high and there’s a risk that if we cut too much, the economy accelerates such that it puts more pressure on inflation,” he said.
Stouffer asked what this means for people worried about future interest rate decisions, and where the economy is headed.
Bostic says people should make financial decisions based on their own circumstance.
“If you can afford the house, then that’s fine,” he said. “If this is going to be a risk or a stretch because of all the uncertainty, it may be the time to sort of pause a little bit.”
“Don’t let these things cause you to lose a lot of sleep. There’s a lot of turbulence right now, so make sure that the choices you make are the ones that you’re going to be able to have some peace with,” he added.
The Atlanta Fed territory includes Georgia, Alabama, Florida, Mississippi, Tennessee and portions of Louisiana.
Fed presidents rotate voting roles, but all participate in the rate-setting discussions and debate. Bostic does not have a vote this year.
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