Fed's Barkin: Inflationary pressures are intensifying, supporting the decision to keep interest rates unchanged.

Atlanta Fed President Raphael Bostic said on Wednesday that he still supports keeping interest rates unchanged, noting that recent inflation data shows price pressures are rising. Bostic said, "We see potential signs in the economy suggesting that inflation pressures are increasing, which is indeed concerning." He added, "I am in a wait-and-see mode when it comes to interest rates." The US core inflation rate in June has been below expectations for the fifth consecutive month, but the Consumer Price Index (CPI) report released by the US Bureau of Labor Statistics also shows that tariffs are starting to push up prices for some goods. Bostic said, "We may be at a turning point. In recent months, the inflation data has been performing very well, very close to the target level. But the recent CPI report does convey a different message." Due to concerns that tariffs will raise inflation, Federal Reserve officials have refrained from taking interest rate cuts this year. Some policymakers argue that tariffs will only lead to temporary price increases, but most are concerned about their potentially more lasting impact. Bostic declined to comment on reports earlier on Wednesday that US President Trump would seek to remove Federal Reserve Chairman Powell. Trump later denied these reports. According to futures contract pricing, investors are expecting the Federal Reserve to resume interest rate cuts at the policy meeting in September.