The Federal Reserve (FED) Bostic: The US economy may experience a longer period of high inflation.

On July 3, Federal Reserve's Bostic said on Thursday that high inflation in the U.S. may persist for some time, which could seep into consumer psychology, and businesses may need a year or longer to adapt to the changes in trade and other policies. This suggests reasons to be patient before interest rate cuts. He stated, "The main conclusion is that the adjustments to U.S. trade and other impending policies, as well as geopolitical developments, will not be a temporary and simple one-time price change as standard textbook models imply." "On the contrary, it increasingly looks like a process that may take a year or more to fully resolve." "If I am right, then the U.S. economy may experience prolonged high inflation." Bostic noted, "I expect prices to not spike significantly but to rise steadily," which could seep into consumer inflation expectations, presenting greater challenges for the Federal Reserve. He also mentioned that the non-farm payroll data released on Thursday showed that new jobs exceeded expectations, and the unemployment rate slightly fell to 4.1%, "the labor market conditions remain generally healthy," and have not shown signs of deterioration that might require preemptive rate cuts. He stated that the current high uncertainty regarding employment, economic growth, and inflation direction "is not a time for significant monetary policy shifts," and believes that the FOMC's current wait-and-see attitude remains appropriate. ( Jin10 )