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.

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.

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