Former Atlanta Fed chief: Price pressures now a bigger worry than jobs

• Supply-side disruptions in the past have tended to fade quickly, but current shocks are proving more persistent and take longer to filter through, which could influence expectations.
• He expressed approval that Warsh reinforced the stance he took in his Jackson Hole speech.
• The number of households feeling the strain from higher prices has been growing steadily.
• If the central bank fails to convince the public that price increases will level off, trouble lies ahead.
• Inflation expectations are solid — until they suddenly are not.
• He argued it would be unwise to disregard wage growth.
• The Fed has shown patience through most of 2026.
• That patience stemmed partly from an expectation that the war would conclude or that employment figures would weaken.
• A similar show of patience at the October Fed meeting would not surprise him.

Bostic spoke on CNBC. No strong conclusion stands out, but there was the same sense of relief seen in fixed-income markets that the Fed is treating inflation risks seriously.