Federal Reserve's Bostic: Confidence in the 2025 economic outlook has decreased

ChainCatcher news, according to Caixin, Federal Reserve's Bostic stated that confidence in the economic outlook for 2025 has decreased. It is difficult to incorporate all potential policy changes into the economic outlook; unexpected inflation developments are not expected to follow a linear trajectory.

The Federal Reserve did not significantly cut interest rates last year, and the policy remains somewhat restrictive; there is satisfaction with pausing rate cuts to observe economic developments. The Federal Reserve is approaching the threshold level of its balance sheet, with the debt ceiling being a factor in determining this; there is a desire to regularly monitor the balance sheet to ensure that asset shrinkage does not become excessive.