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BlockBeats News, July 3 — On Thursday, Federal Reserve’s Bostic stated that elevated U.S. inflation may persist for some time, which could seep into consumer sentiment, and that businesses may need a year or more to adapt to ongoing changes in trade and other policies. This suggests a reason to remain patient before cutting interest rates. He said, “The main takeaway is that the adjustment of prices and the broader economy to U.S. trade and other upcoming policies, as well as geopolitical developments, will not be a brief and simple one-off price change as standard textbook models suggest.” “Instead, this increasingly appears to be a process that could take a year or longer to fully play out.” “If I am correct, the U.S. economy may experience a longer period of high inflation.” Bostic stated, “I do not expect prices to surge dramatically, but rather to rise steadily,” which could seep into consumers’ inflation expectations and pose a greater challenge for the Federal Reserve. He also noted that Thursday’s nonfarm payroll data showed job gains exceeding expectations and the unemployment rate dipping slightly to 4.1%, indicating that “the labor market remains generally healthy” and has not yet shown signs of deterioration that would warrant a preemptive rate cut. He said that the current high uncertainty in employment, economic growth, and inflation trends means “this is not the time for a major shift in monetary policy,” and he believes the FOMC’s current wait-and-see approach remains appropriate. (Jin10)