Federal Reserve hawk Bostic suddenly announces retirement

According to "Fed Whisperer" Nick Timiraos, Atlanta Fed President Raphael Bostic announced on Wednesday that he will retire when his current five-year term ends at the end of February next year.

It is reported that Bostic's departure will weaken the hawkish voices within the Fed during a politically sensitive period. This chairman, who has never voted against policy decisions, typically aligns closely with the center of the rate-setting committee.

Three years ago, Bostic was scrutinized for failing to strictly adhere to the regulations governing senior officials regarding the disclosure of personal financial transactions. At that time, he still received support from the board. Two other Fed presidents resigned in 2021 after being scrutinized for financial reporting issues. Insiders at the Fed believe that the financial restatement incident raises concerns about Bostic's prospects for reappointment, especially in the context of Trump and his allies continuously questioning the Fed's credibility. This year, the Fed has faced unprecedented political pressure from the Trump administration for not being more aggressive in cutting interest rates.

At a luncheon at the Atlanta Economic Club on Wednesday, he candidly stated that while the slowdown in job growth complicates decision-making, inflation remains "a more clear and pressing risk," and warned that pushing interest rates toward neutral or stimulative levels "could inject fresh blood into the inflation beast." He did not mention his retirement decision during the speech.