Consumers are 'tapped out' on further price hikes: Fed's Bostic
Rising inflation has left US consumers with limited tolerance for further price hikes. Federal Reserve Bank of Atlanta President Raphael Bostic sits down with Yahoo Finance senior Fed reporter Jennifer Schonberger to highlight the complexity businesses face, especially regarding President Trump's latest tariff policies. "So in our surveys and in our conversations with leaders, we've asked them 'What are they likely to do?' And, what they've all said is that our first best choice would be to pass on this to the final price," Bostic says, while also citing how there's already been a period of intense inflation. "Consumers may not have an appetite to do that." Businesses are wary of alienating customers who are "pretty much tapped out," Bostic explains, sharing his views on the Fed's monetary policy and responding to concerns over whether the central bank reduced interest rates too aggresively. "I don't think we've cut too much. I think we are still in a restrictive posture. That's what we need. And as inflation gets closer to our 2% target, the ideal way for our policy to move forward would be for us to get to our neutral level right at that point," he says. While Bostic is open to further rate cuts, the priority remains analyzing incoming data and adapting policies accordingly. To watch more expert insights and analysis on the latest market action, check out more Market Domination here. This post was written by Josh Lynch
