Fed’s Bostic calls for patience amid current economic situation

Raphael Bostic, an official of the US Federal Reserve (Fed), called for maintaining patience amid uncertainties in the country's economic development. In his view, a wait-and-see approach on this matter may prompt members of the governing body not to change the course of monetary policy.

Earlier, Fed officials once again kept the interest rate unchanged during the regulator's meeting. This decision was driven by changes in the nation's immigration policy and the effect of trade tariffs imposed by US President Donald Trump. Forecasts published after last month's meeting reflect the governing body's uncertainty regarding expectations for borrowing cost reductions within this year. Ten policymakers anticipate the interest rate being cut at least twice, while seven officials see no potential for changes.

Commenting on the current labor market situation, Bostic noted signs of easing conditions due to slowing hiring. The official also drew attention to the country's growing budget deficit and the size of US federal debt.