Federal Reserve's Bostic: The Fed Still Needs to Focus on Inflation, Monetary Policy Must Remain Patient

SmartContractAuditor · 2026-02-24T12:36:08+00:00

Federal Reserve's Bostic emphasizes the need to maintain patience in monetary policy, warns that the U.S. may face structural unemployment risks, and believes that adjusting interest rates alone cannot solve the issue. Bostic advocates focusing on idle labor, emphasizing that controlling inflation is the top priority, and avoiding overreaction to short-term economic fluctuations.

SmartContractAuditor

2026-02-24 12:36:08

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Odaily Planet Daily reports that Federal Reserve Board member Bostic emphasized that monetary policy needs to remain patient. Bostic warned that the U.S. may be facing a risk of rising structural unemployment, a fundamental shift that cannot be fixed solely through interest rate adjustments. To address this situation, the Federal Reserve is closely monitoring labor underutilization across different groups. If unemployment issues are due to structural factors, attempting to correct them with large rate cuts could inadvertently boost inflation rather than create jobs. Despite encouraging productivity improvements, Bostic maintains a hawkish stance on price stability. He cautioned against overreacting 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 it must resist the impulse to prematurely shift policy direction. (Jin10)

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