Asks about the mood among companies and consumers in Bostic's district, noting surveys show increasing pessimism.
Mike
Raphael Bostic
Describes sentiment as 'cautious optimism,' with emphasis on cautious. Businesses and households have shown resilience to uncertainty (e.g., tariffs) but are waiting to see what happens.
Asks what the cautious sentiment means for the economy.
Mike
Raphael Bostic
Expects trends from second half of 2025 to continue through 2026. Sees potential upside as tariff effects fade and stimulative aspects of last summer's tax bill come on board, especially if consumer certainty increases.
Asks if recent weak employment data (ADP, Challenger) gives him pause about the Fed pausing its policy.
Mike
Raphael Bostic
No pause. Inflation has been too high for too long, plateauing well above target for nearly two years, which is unacceptable. The labor market is turbulent due to structural changes.
Asks what he's learned about the economy and inflation since 1995.
Mike
Raphael Bostic
The economy is complex and requires on-the-ground engagement to understand. Inflation, once entrenched, changes how the economy evolves, so restrictive policy is paramount to return to 2%.
Asks if the economy is becoming more K-shaped.
Mike
Raphael Bostic
The split (barbell/K-shape) has existed for a while. Many families feel precarious and uncertain, underlying low consumer confidence. The solution is to show people where new jobs are and how to get skills for them.
Asks about Treasury Secretary's comment that the Fed has lost public confidence, and if he hears that in his district.
Mike
Raphael Bostic
His experience is the opposite; people in his district express gratitude and understanding of the Fed's difficult, data-dependent job in a complex world.
Asks about Kevin Warsh's call for 'regime change' at the Fed.
Mike
Raphael Bostic
Has no idea what that means. Emphasizes the Fed must remain data-dependent and engage with business leaders, possibly leaning more on non-official data sources to look forward.
Asks if Warsh has a point about 'mission creep.'
Mike
Raphael Bostic
Doesn't see the mission-creep argument. The Fed's role is to ensure bank stability by having prudent conversations about risks, not to direct lending.
Asks what he would tell Donald Trump about Jay Powell and the Fed.
Mike
Raphael Bostic
Powell is trying his best, is smart, understands markets, and should be allowed to succeed.
Asks if the Fed is under threat from the current administration.
Mike
Raphael Bostic
Criticism of the Fed is part of its history. The Fed must be solid, resolute, and stay focused on its mandate.