Fed’s Atlanta Leaders Expect Single Rate Cut in 2025

Federal Reserve Bank of Atlanta President Raphael Bostic and the Atlanta Fed Chairman both express a cautious and data-driven approach to monetary policy, anticipating only one interest rate cut in 2025. Bostic highlighted the solid labor market and the luxury the Fed has to be patient before making further rate adjustments, projecting three additional cuts in 2026. Both officials note the uncertainty in the economic environment, especially regarding trade policy and tariffs, which may cause persistent upward inflationary pressures rather than a one-time increase. Bostic emphasized that tariff pricing has yet to fully impact the economy, and policy uncertainty continues to influence inflation expectations. The Atlanta Fed leadership underlines the importance of stability and gradual adjustments in monetary policy to balance economic growth with inflation control. This cautious stance contrasts somewhat with broader Fed forecasts but reflects a preference for measured action supported by incoming data.