11:00 AM EST, 02/20/2025 (MT Newswires) -- The US economy remains strong, with monetary policy in a good place, but care is necessary going forward due to increased uncertainty, Atlanta Federal Reserve Bank President Raphael Bostic said Thursday in an essay posted to the Atlanta Fed's website.

"The economy is strong, monetary policy is well positioned, and today's pervasive ambiguity calls for caution and humility as we continue working to bring about price stability and maximum employment for the American people," Bostic wrote.

Despite this positive outlook, it is not the time for complacency, Bostic noted, as more work on inflation is needed and the current firm footing could shift.

"I view the employment outlook as stable, but signs of slowing are accumulating," Bostic wrote. "And despite considerable progress, our campaign to bring inflation to the Committee's 2% goal is not complete, and additional threats to price stability may emerge."

Discussions with business contacts show possible tariffs and changes to immigration policy are sources of uncertainty that could shift the inflation and employment pictures, Bostic added.

"In recent weeks, we've heard not only enthusiasm -- particularly from banks, about possible shifts in tax and regulatory policies -- but also widespread apprehension about future trade and immigration policy," Bostic wrote. "These crosscurrents inject still more complexity into policymaking. In a nutshell, contacts are concerned that tariffs could increase costs. Many feel confident that if that happens, then they can pass along higher costs in their prices."

Likewise, businesses are concerned that mass deportations could negatively impact their supply of labor, particularly in the home construction and leisure and hospitality industries.

"Immigration has helped to fuel a growing labor supply since the pandemic, which has boosted the labor market and broader economy," Bostic said. "A sudden decline in the number of available workers could create unpredictable disruptions, contacts tell us, even among employers who do not typically employ large numbers of immigrants."

Bostic said that the Fed does not dictate fiscal policy but does take these issues into consideration when making monetary policy.

"The Federal Reserve is an apolitical institution, and I never tell policymakers what they should do," Bostic wrote. "That said, these issues are very much on the minds of business decision-makers my staff and I talk to, and so they must be considered in my outlook for the economy and monetary policy."

Bostic next votes on the FOMC in 2027.