Federal Reserve's Bostic: The impact of the tariff ruling depends on whether there will be refunds and how businesses respond

Atlanta Federal Reserve Bank President Raphael Bostic stated that the Supreme Court's ruling invalidating President Trump's global tariffs will have an economic impact depending on whether companies that have already paid tariffs will receive refunds, and to what extent businesses will adjust their practices as a result of the ruling.

"Will companies that have already paid tariffs be refunded? If so, that would create considerable disruption," Bostic said on Friday at an event in Birmingham, Alabama.

Bostic noted that it is crucial whether businesses will "return to their original business models" or whether the adjustments made last year to supply chains and other strategies will become the new normal.

Bostic said, "We are all calculating and trying to figure out how this will affect our individual businesses," while also assessing how consumers will respond.

In terms of monetary policy, Bostic indicated that the Federal Reserve's benchmark interest rate is 25 to 50 basis points above the so-called neutral level. The neutral level refers to the rate that neither restrains nor stimulates the economy.

"I think it is prudent to keep policy in a slightly restrictive stance," Bostic said.

He also mentioned that if inflation rises, the U.S. central bank should consider raising interest rates.

Editor: Li Tong