Macro Musings with David Beckworth Raphael Bostic on Life as a Regional Fed President, the Responsibilities of a Dual Mandate, and the Results of the 2025 Framework Review
Oct 6, 2025
Raphael Bostic, President and CEO of the Federal Reserve Bank of Atlanta, shares his unique perspective on central banking. He discusses how birding fosters focus and humility in policymaking. Bostic also delves into the Atlanta Fed's tools for real-time economic analysis and the implications of the 2025 Fed framework revision. Inflation and its persistence are major concerns, alongside the impacts of AI on labor and housing mobility. Plus, he offers insights on fiscal pressures and the resilience of the treasury market.
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Use Rate Policy First, Backstops Second
- Treat the federal funds rate as the primary tool and keep other facilities as backstops for rare constraint scenarios.
- Communicate clearly during rough patches so markets know the committee remains committed to its goals.
Nominal GDP Targeting Is On The Table
- Nominal GDP targeting and other alternatives were considered and will see more debate in coming years.
- Bostic expects robust discussion and potential exploration of alternative metrics at the Fed.
Inflationary Pressures May Persist
- Inflation remains a concern with rising business cost pressures and potential spillover into consumer prices.
- Bostic warns this could persist and stresses watching consumer and business expectations closely.
