Fed’s Bostic Declares: No More Rate Cuts Coming in 2025

The Federal Reserve just slammed the brakes on monetary easing—and markets are feeling the whiplash.

The Hawkish Stance

Atlanta Fed President Raphael Bostic delivered the blunt message that policymakers won't approve additional interest rate reductions through year-end. The declaration signals a dramatic shift from the accommodative posture that defined earlier pandemic-era policy.

Market Implications

Traders immediately recalibrated expectations, with futures pricing reflecting the new reality of sustained higher borrowing costs. The dollar strengthened while growth-sensitive assets faced pressure—because nothing says 'stable economy' like pulling liquidity right when everyone gets comfortable.

Wall Street's favorite free money party just got its tabs cut off.

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“I am concerned about the inflation that has been too high for a long time,” Bostic said in an interview with the Wall Street Journal on Monday. “And so I today WOULD not be moving or in favor of it, but we’ll see what happens.”

Fed’s Bostic Flags Jobs Uncertainty, Expects Unemployment Rate to Rise

Bostic added that he penciled in only one rate cut for 2025, which includes the recent cut. He believes that the Fed’s long-term goal of 2% inflation will be achieved by 2028, with inflation coming in at 2.9% by the end of 2025.

As for the labor market, Bostic said it carries a “fair amount of uncertainty,” although it isn’t in a crisis. However, he expects the unemployment rate to rise to 4.5% by December, up from 4.3% in August.