Fed's Bostic: Fed could cut rates twice this year, uncertainty high

Fed's Bostic said he expects two rate cuts this year, but in the context of ‘widespread’ uncertainty, more rate cuts may occur, or less. He doesn't expect a sudden burst of inflation, and his headline inflation expectation is for a bumpy downward path. He thinks inflation will move toward the 2% target, but it's not there yet. The Fed is aiming for 2.0% without hurting the labour market. Bostic said businesses are optimistic about deregulation, but are concerned about the impact of tariffs and immigration policy changes. In addition, he sees signs of moderation in the labour market. Bostic said the current benchmark interest rate is moderately restrictive and needs to remain so. He said the slowdown is a major concern due to upcoming policy shifts, but businesses expect solid economic growth in 2025.