Fed's Bostic (Retiring) says inflation is too high and needs to come down, want clear evidence of a return to 2%, via CNBC

Policy:

• Fed should be more patient for now.


• Still think we need to be somewhat restrictive.


• A case can be made that inflation and job risks are now in balance.


• Rate decision involves 12 people.


• Two cuts in 2026 is not the baseline case.

Inflation:

• Still have ways to go on inflation, need to be vigilant.


• Still tariff effects on prices that have yet to come through.


• Expects inflation to be stubborn.

Labour Market:

• Downside risk to labour market is much further away than it was.

Fed Chair:

• Do not know Warsh well, but head he is quite thoughtful.


• Independence of the Fed is always a concern.

Balance Sheet:

• Balance sheet grew in response to crisis, but should back out of MBS.


• Current balance sheet rise is appropriate and needs to grow with the economy.

30 Jan 2026 - 13:37- Fixed IncomeImportant- Source: CNBC