The Federal Reserve (FED) hawkish | Bostic, who advocates "no interest rate cut in December," suddenly announced his retirement in February next year.

Atlanta Federal Reserve President Bostic announced his retirement in February 2026, coinciding with political pressure and a leadership transition at the Federal Reserve, bringing new personnel uncertainties to the Fed. This article is sourced from an article by Wall Street Insights, organized, translated, and authored by Foresight News. (Background: The Federal Reserve's mouthpiece shouts “Fed goes completely offline”: losing third-party small non-farm employment data, market uncertainty intensifies) (Background Supplement: The Federal Reserve's mouthpiece warns: government shutdown makes Fed decision-making difficult, year-end rate cuts may be canceled?) The Atlanta Federal Reserve stated in a statement that Bostic will step down on February 28, 2026. His departure may have limited impact on monetary policy, as Bostic would not have had voting rights on Fed interest rate decisions before 2027. According to the rotation system, only 5 of the 12 regional Federal Reserve presidents participate in regular interest rate voting along with 7 board members. However, all regional Federal Reserve presidents, including Bostic, participate in policy discussions and help form final decisions. Notably, Bostic's decision to retire comes at a time when regional Federal Reserve presidents are facing a leadership transition, with the seven board members at the Federal Reserve's Washington headquarters needing to jointly approve a new five-year term for the 12 regional Federal Reserve presidents, which will take effect on March 1 of next year. Analysts point out that Bostic's departure will bring more uncertainty to the Federal Reserve, which is currently experiencing other notable personnel changes and facing political pressure from President Trump to cut interest rates. Bostic will leave a few months before the Federal Reserve welcomes a new leadership team, as Chairman Powell's term will end in May next year. Bostic's retirement may have limited impact on monetary policy. Bostic has served as President of the Atlanta Federal Reserve since 2017, becoming the first African American and openly gay regional Federal Reserve president in the history of the Federal Reserve. At 59 years old, he could have continued serving as president until the mandatory retirement age of 65, which means he could have served for another six years. Three years ago, Bostic was scrutinized for disclosing that he did not comply with regulations related to the personal financial transactions of senior Federal Reserve officials. At that time, he still received the board's support. That year, two other regional Federal Reserve presidents resigned after being investigated for financial issues. A report released by the Federal Reserve's Inspector General last year pointed out that Bostic violated relevant policies, creating the impression of “acting based on confidential information,” but the investigation did not find evidence that he actually used insider information for trading. Federal Reserve Chairman Powell stated in a statement on Wednesday that it was an “honor” to work with Bostic, noting that his voice was strong in policy discussions and that his leadership strengthened the Federal Reserve institution and advanced its mission. Bostic expressed pride in the achievements he made during his tenure at the Atlanta Federal Reserve. In his statement on Wednesday, he said: “I take pride in the accomplishments achieved during my term. We have made the noble goal of an economy that benefits everyone more of a reality. I look forward to exploring new ways to advance this grand vision in my next chapter.” Bostic cautious about rate cuts in December. Bostic has repeatedly warned this year about the risks posed by persistent inflation, urging his colleagues to be cautious about rate cuts and to pay attention to the potential impacts of tariffs. Although Bostic did not have voting rights on monetary policy this year, he expressed support for the Federal Reserve's two rate cuts in September and October. However, he also emphasized that monetary policy should remain restrictive as inflation remains above the Federal Reserve's 2% target. On Wednesday, Bostic stated in a speech prepared for the Atlanta Economic Club event that inflation remains a greater risk facing the U.S. economy, and he tends to keep interest rates unchanged until it is clear that inflation is heading towards the Federal Reserve's 2% target. Bostic pointed out that the current environment faced by decision-makers is quite challenging: the labor market is softening, while inflation remains above target levels. Nevertheless, he still called for caution regarding further rate cuts, warning that loose monetary policy could rekindle inflation. Despite changes in the labor market, clearer and more pressing risks remain related to price stability. The Federal Reserve has already implemented two rate cuts this year to support the weakening labor market, but there are differences among senior officials regarding whether to cut rates again in December. Some officials advocate for further rate cuts to prevent deterioration in the job market, while others believe that inflation should continue to be restrained, as the inflation rate is still above the Federal Reserve's 2% target. In this regard, Bostic stated: “In this situation, adjusting policy to close to or into a loose range could inject new life into the inflation beast, potentially shaking businesses and consumers' inflation expectations. I do not believe this is an appropriate trade-off we should consider right now.” The government shutdown has led to delays in the release of official economic statistics, making the outlook increasingly uncertain, but the Federal Reserve is expected to have more data before the meetings on December 9 and 10. Bostic stated on Wednesday that surveys from business contacts clearly indicate that costs and prices are facing ongoing upward pressure. Bostic also noted that recent changes in the labor market may partly stem from structural factors that the Federal Reserve cannot address through interest rates, including changes in immigration policy and the application of technologies such as artificial intelligence. “Overall, the official data we have and other alternative indicators I monitor suggest that the labor market clearly does not need the strong medicine of monetary policy.” Related Reports: Don't just look at rate cuts! What changes will the Federal Reserve's end of quantitative tightening bring to liquidity? Goldman Sachs predicts the “U.S. government shutdown” will end within two weeks, making the Federal Reserve's December rate cut “more justified”? The Federal Reserve is almost certain to cut rates tonight! The market focuses on Powell's speech: how will the Fed signal the December policy path under the government shutdown? <Federal Reserve Hawkish | Bostic, who advocates “no rate cut in December,” suddenly announces retirement in February next year> This article was first published in BlockTempo, the most influential blockchain news media.