Atlanta Federal Reserve President Raphael Bostic said on Thursday the U.S. central bank should still be able to lower interest rates by a half a percentage point this year, though there remains extensive uncertainty about the impact of President Donald Trump's trade and immigration policies.

Officials are debating when to restart interest rate cuts, as high prices linger and Trump’s policies add to economic uncertainty.

The Fed, citing elevated inflation pressures, held short-term interest rates steady at a range of 4.25% to 4.5% at its January meeting.

Central-bank officials cited trade policy as a factor that could hinder inflation progress.

The US Federal Reserve is expected to cut interest rates twice in 2025, which could boost Bitcoin’s price as investors favor riskier assets because of their potential for higher returns.

The market’s expectations for the Federal Reserve’s next move on interest rates held steady after the publication of minutes from the Federal Open Market Committee's January meeting. Traders are still expecting an extended pause on rate cuts with the next quarter-point reduction coming in July,

Federal Reserve governor Christopher Waller said the central bank should cut interest rates further if inflation makes more progress back toward target.

"This is no time for complacency,” the Federal Reserve Bank of Atlanta president wrote.

Atlanta Federal Reserve President Raphael Bostic reportedly said that he expects the central bank to make two quarter-point rate reductions this year, but there’s still a lot of uncertainty. According to a Reuters report,