Feds Bostic speaks in Jacksonville Florida
Fed's Bostic is speaking in Jacksonville Florida. His prepared remarks say:
- inflation likely to run a bit above 2% for a while
- concerns over trade war overshadowing tax cuts
- overshooting 2% inflation is not a problem
- economy on track and fed close to both its targets
- trade policy most obvious risk to economy at the moment
- uncertainty over possible tariffs may be undercutting business investment, offsetting the potential impact of corporate tax cuts
- businesses appear bullish on economy, except the possibility of a trade war
- no clear sign consumer spending proceeds of tax cuts: concerning also that business investment has not increased faster
- recent business surveys, particularly in firms possibly subject to tabs, indicate possible upward inflation pressure with unit costs rising
- labor market tight but not overheating
