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Federal Reserve Watch for Feb. 5: Bostic Says FOMC Should Not Lower Rates Further in 2026

BY MT Newswires | ECONOMIC | 02:46 PM EST

02:46 PM EST, 02/05/2026 (MT Newswires) -- Atlanta Fed President Raphael Bostic (nonvoter) said that he believes the FOMC should hold rates steady in 2026 and that it will take time for Kevin Warsh, the nominee to replace Jerome Powell as Fed share, to convince a majority of the committee that rates need to be lower.

Recent comments of note:

(Feb. 4) Fed Vice Chair for Supervision Lisa Cook (voter) said that she believes that the balance of risks is tilted more toward elevated inflation and that the FOMC cannot lose sight of its mandate to lower the pace of price growth. She added that the 75 basis points of rate reduction at the end of 2025 should help support the labor market.

(Feb. 3) Richmond Fed President Tom Barkin (nonvoter) said that the US economy remains resilient, with last year's rate cuts supporting the labor market, but added that the FOMC is ready to respond if conditions deteriorate.

(Feb. 2) Atlanta Fed President Raphael Bostic (nonvoter) said that there is time to be patient when making rate decisions, adding that he does not see the current monetary policy stance as overly restrictive but rather only 1-2 cuts above neutral. He noted that data over the next few months will remain volatile due to the government shutdown.

MT Newswires does not provide investment advice. Unauthorized reproduction is strictly prohibited.

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In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

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