Atlanta Federal Reserve President Raphael Bostic stated in an interview that he foresees a slower progression in inflation in the upcoming months. Consequently, he now predicts that the Fed will reduce its benchmark interest rate by only a quarter of a percentage point by the end of this year. Bostic mentioned that businesses are likely to increase prices due to the anticipated impact of forthcoming tariffs. This has prompted him to adjust his view on the timing of rate cuts. Previously, Bostic had expected two rate cuts this year, a perspective that most of his colleagues upheld during their recent meeting, projecting two quarter-point rate reductions in 2025. Despite the median projection remaining the same, some officials revised their outlook upwards. Bostic emphasized the potential impact of slower inflation progress and the inclination of businesses to transfer import taxes to consumers. The recent imposition of tariffs by President Donald Trump on China and imported metals, with plans for additional levies on Mexico, Canada, and other nations, has raised concerns. Bostic expressed worries that businesses and consumers may have grown accustomed to higher inflation levels following the pandemic. He noted that businesses anticipate passing on tariff costs to consumers, believing that consumers can handle the price increases without affecting their market share. Bostic clarified that he is not a voting member on Fed interest rate policy this year.