Lates News

The Federal Reserve's Bostic emphasizes the need for patience in monetary policy. Bostic warns that the United States may be facing the risk of a structural increase in unemployment, and that this fundamental shift cannot be repaired by rate adjustments alone. In response to this situation, the Federal Reserve is closely monitoring the labor market conditions of different groups. If unemployment problems are due to structural factors, attempting to correct them through significant interest rate cuts may inadvertently push up inflation rather than create jobs. Despite the encouraging increase in productivity, Bostic maintains a hawkish stance on price stability. He warns against making overly impulsive reactions to short-term economic "noise," believing that overreacting to immediate pressures could lead to more instability in the future. The Federal Reserve's primary task remains controlling inflation and must resist the urge to prematurely change policy direction.