US inflation challenge has not been won yet, Fed's Bostic says

Jan 14 (Reuters) - The challenge in containing inflation in the U.S. economy "has not been won yet" and requires the Federal Reserve to continue to be restrictive in its monetary policy stance, Atlanta Federal Reserve President Raphael Bostic said on Wednesday.

The economy is likely to accelerate through 2026 thanks in large part to tax and other fiscal policies put in place by the Trump administration last year, and those tailwinds could continue placing upward pressure on demand and prices.

"That is something we have to watch," Bostic said at an event in Atlanta, saying inflation was "still quite far" from where the Fed needs it to be. Bostic has announced he will be retiring from his post early this year.