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2026-02-21 01:00:08
[Federal Reserve Official Bostic: Impact of Tariff Ruling Depends on Tax Refund Arrangements and Business Response] Atlanta Federal Reserve Bank President Raphael Bostic stated that the Supreme Court's ruling that Trump's global tariff policies are invalid will have a crucial impact on the economy, depending on whether companies that have already paid tariffs will receive refunds and the extent to which they will adjust their business strategies accordingly. Speaking at an event in Birmingham, Alabama on Friday, Bostic said, "Should tariffs be refunded to companies that have already paid them? If refunds are implemented, it will cause significant market disruption." He emphasized that it is crucial whether companies return to their original business models or transform last year's adjustments to supply chains and other areas into long-term strategies. Bostic stated, "Everyone is calculating and assessing, trying to clarify the impact of this ruling on their own businesses, while also judging consumer reactions." Regarding monetary policy, Bostic pointed out that the Fed's benchmark interest rate is 25 to 50 basis points higher than the neutral rate, which is the interest rate level that neither inhibits nor stimulates the economy. He said, "I think maintaining the policy rate within a slightly restrictive range is a prudent choice." He added that if inflation picks up, the Fed should consider raising interest rates.
