Atlanta Fed President Bostic Discusses Recent FOMC Decision to Hold Rate Steady

The Federal Open Market Committee (FOMC) on January 28 paused a series of three consecutive rate cuts as Committee participants evaluate incoming information about inflation and employment.

Atlanta Fed president Raphael Bostic indicated he supports the Committee's decision, which maintains the target range for the federal funds rate at 3 1/2 to 3 3/4 percent. In 2025, the FOMC voted for three quarter-point reductions in the interest rate.

"My concern for the past three or four years has been that inflation is too high, and we've got to get it down to the 2 percent target," Bostic said. "We've made good progress, but for the last two years or so we've been kind of stuck in place in this high 2s, low 3s range. I would say that we should be waiting and be more patient."

Bostic spoke January 30 in his office at the Atlanta Fed with CNBC's senior economics reporter, Steve Liesman. A video of their conversation is available here, on CNBC.com.

Federal Reserve chair Jerome Powell said in a January 28 press conference following the FOMC meeting that the Committee's 10-2 vote represented "broad support" to hold the interest rate steady while members consider future adjustments that will be based on metrics including incoming data and evolving outlooks. The two dissenting votes were cast by Governor Stephen I. Miran and Governor Christopher J. Waller, both of whom preferred to lower the target range for the federal funds rate by a quarter percentage point at this meeting.

"We have two mandates and they've kind of been in conflict," Bostic told Liesman. "There's been a downside risk to the employment mandate. There's been an upside risk to inflation. We are still too high in inflation, so I think we need to be somewhat restrictive. I do feel the downside risk-that a catastrophe is going to happen in employment-is much further away from us than it was even a month ago, and that gives me some confidence we can be patient."

Bostic has favored a somewhat restrictive monetary policy as the FOMC follows its strategic framework in its efforts to manage the tension between the Fed's congressional mandate to promote stable prices and sustainable maximum employment. Bostic has said he views sticky inflation as a greater risk to the overall economy than indications of a softening labor market.

Bostic does not currently cast a vote on monetary policy matters because of the rotation schedule for voting by presidents of Federal Reserve Banks, though he provides information about the southeastern economy and participates in the FOMC's assessment of the economy and policy options.

Economic activity in the Southeast grew slightly in the final weeks of 2025, according to the January 14 edition of the Beige Book, a Federal Reserve System publication about anecdotal, real-time economic conditions across the 12 Federal Reserve districts.

In the Sixth Federal Reserve District, employment levels and transportation activity were flat to slightly down, prices rose slightly, home and retail sales improved, and manufacturing activity was flat to slightly up, the report showed. Bostic said the Atlanta Fed's contacts in the district who responded to a survey in late 2025 presented a more muted response than they had in previous surveys regarding their plans to pass the costs of tariffs to consumers. The responses inform Bostic's outlook on inflation.

"I think it's less likely we'll see inflation pop into the mid 3s, or anything like that," Bostic said. "But the risk that inflation stays where it is, at this level that is too high, I think is still out there and a source of concern."

The FOMC's January meeting was the final one for Bostic-he previously announced he would retire at the end of his current term, which ends February 28. The Atlanta Fed's first vice president, Cheryl Venable, will serve as interim president until a successor is installed following a search process now under way. For more information on the search and how you can participate, visit the 2026 Atlanta Fed Presidential Search and a companion collection of videos at Atlanta Fed Presidential Search.

Liesman concluded by asking Bostic about any insights he would share with his successor.

"Go out, talk to a lot of folks," Bostic said. "Businesses actually know a lot about what's happening and you can learn from them. Trust the staff. We have one of the best staffs in the country and they're fun to work with. I've learned things every day. And just be open to the world. The Sixth District is a wonderful place. People are warm in their heart, they're very generous and transparent, and it's just a great experience."

Read the Federal Reserve's FOMC statement, issued January 28.

Watch Fed chairman Jerome Powell's January 28 press conference.

Read Bostic's December 16, 2025, quarterly essay, FOMC's Credibility on Inflation Could Be at Stake. Watch Bostic's presentation of the essay here.

Watch Bostic's January 14 moderated talk with David Rubinger, market president and publisher of the Atlanta Business Chronicle, at the Chronicle's 2026 Economic Outlook event.

Watch Bostic moderate a January 12 talk with Jeffrey Sprecher, New York Stock Exchange chairman and founder, chairman, and CEO of Intercontinental Exchange at the Atlanta Rotary.

Watch Bostic's December 16, 2025, moderated talk with Kim Hartsock, Gwinnett Chamber chair and partner at Warren Averett at the Gwinnett Chamber of Commerce.

Watch Bostic's November 14, 2025, moderated talk with John Martinez, vice president for evidence to practice at MDRC, at the Association for Public Policy Analysis and Management's fall research conference.

Watch Bostic's November 12 presentation and Q&A sessions at the Atlanta Economics Club, "Weighing the Risks: Why Inflation Tips the Scales,"

Watch Bostic's October 31 conversation with Cleveland Fed president Beth Hammack at a research conference at the Federal Reserve Bank of Dallas.