Fed maintains public trust as Bostic remains confident in reaching 2% inflation target

The outgoing head of the Federal Reserve Bank of Atlanta pushed back against claims that the central bank has lost public confidence, sayiniday that Americans still believe the institution will stick to its mission despite mounting criticism from Washington.

Raphael Bostic, who steps down at told Bloomberg New remains optimistis colleagues will continue outside pressure and focus on best for the economy. The remarks come as President Donald Trump and members of his administration have demands for quicker rate cuts.

“Ultimately, my current, soon to be former, colleagues will have to rise to the moment and do what they think is right, or they won‘t,” Bostic said. “And if they don’t, then see it. But pretty confident, for the people that I know, that they will.”

The comments follow sharp criticism from Treasury Secretary who told lawmakerdnesday that the Fed had “lost the trust of the American people.” Trump himself has repeatedly called for the central bank to bring down borrowing costs faster than officials have been willing to move.

But Bostic offered a different take on public sentiment. He pointed to steady inflation expectations even during the recent upheaval as proof that people still trust the Fed to act without bowing to political influence.

“I take that as a signal that the business community and families still have faith in the Federal Reserve, that going to do the things that been asked to do and charged to do,” he said. “I think our institution has been resilient in the face of a chaotic world.”

The Atlanta Fed president stressed that getting prices under control remains the top priority. He noteflation has stayed well above the 2% target for nearly two years, calling that trend unacceptable. Even with challenges in the job market, Bostic arguee Fed take its eye off rising costs.

His keep borrowing costs high enough to slow the economy until inflation the 2% goal. He warned that expensive goods and the threat of further increases leave many families struggling. This has created what he called a “K-shaped” or “barbell” where households with less money feel especially squeezed.

On the jobs front, Bostic saiployers are pulling back on hiring for entry-level positions because artificial intelligence could soon handle those tasks. He also blamed companies for cutting staff after hiring too many people during the pandemic, confusion over shifting immigration forrent labor market troubles.

Getting a clear picture of really happening with employment might take until April or May, he suggested, as officials try to separate temporary disruptions from lasting changes in how the economy works.

Addressing calls for “regime change” from incoming officials like chair-designate Kevin Warsh, Bostic defended the Feds approach of making decisions based on economic data. He saie central bank should rely even more on information gathered directly from business leaders, not just government reports.

He also stood by the Fed‘s expanded role in watching for risks in the banking system and making sure the economy benefits everyone, sayinese duties help achieve maximum employment. While some want to narrow the Fed’s focus, Bostic argueis broader view is necessary.

The retiring Fed official acknowledged that political heat “comes with the territory” but saie institution must stay committed to stable prices and full employment to keep the economy predictable over time. He cautioned that once inflation gets stuck in peoples thinking, it changes how the entire economy operates.

Bostic wrapped up by emphasizine Fed has a job to do on price stability, regardless of what other players in the financial system might want or need. Different groups may have their own goals and timelines, he said, but the central bank needs to stick to its mandate.

The statements mark one of Bostics final defenses of Fed independence as he prepares to leave his post after years navigating criticism from politicians on both sides.