Federal Reserve interest rate cut divergence intensifies: Boston Fed president warns that tariffs may lead to long-term inflation, maintains expectation of one interest rate cut within the year.

date
08/08/2025
According to the ZhuTong Finance APP, Raphael Bostic, President of the Federal Reserve Bank of Atlanta, stated that he still maintains the expectation of a possible rate cut this year, but emphasized the need to focus on the potential impact of the Trump administration's tariff policy on inflation. In a virtual discussion organized by the Florida Association of Chief Financial Officers, Bostic pointed out that the most critical issue currently is to determine whether the price increase caused by tariffs is a "one-time event" or will lead to more lasting structural changes. He bluntly stated that there is reason to be skeptical about whether "this round of tariffs conforms to typical one-time, temporary inflation characteristics."