Federal Reserve official Bostic: The impact of tariffs ruling depends on whether there will be refunds and how businesses react.

Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that the Supreme Court ruling on President Donald Trump's global tariffs being invalid will depend on whether companies that have paid tariffs will receive refunds and to what extent businesses will adjust their practices due to the ruling. "If refunds are demanded from companies that have already paid tariffs, it will cause significant disruption," Bostic said at an event in Birmingham, Alabama on Friday. Bostic emphasized the importance of whether businesses will "return to their previous business models" or if the adjustments made to supply chains and other strategic aspects last year will become the new norm. Bostic said, "We are all calculating, trying to figure out how this will affect our respective businesses," and also assessing how consumers will react. In terms of monetary policy, Bostic stated that the Federal Reserve's benchmark interest rate is 25 to 50 basis points higher than the so-called neutral level. The neutral level refers to the interest rate level that neither suppresses nor stimulates the economy. "I think it is prudent to keep policy slightly restrictive," Bostic said. He also stated that if inflation rises, the Federal Reserve should consider raising rates.