Fed’s Bowman: not ready to cut rates until clearer inflation is ebbing
U.S. Federal Reserve Governor Michelle Bowman reiterated on Thursday that she is still not ready to support a central bank rate cut with inflation pressures still elevated. The Fed’s current interest rate stance remains “restrictive” and price pressures should cool even with monetary policy held at current levels, Bowman said in the text of a speech prepared for delivery before the Idaho, Nevada, Oregon, and Washington Bankers Association 2024 Annual Convention, held in Stevenson, Washington. “Should the incoming data indicate that inflation is moving sustainably toward our 2% goal, it will eventually become appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive,” Bowman said, adding “we are still not yet at the point where it is appropriate to lower the policy rate, and I continue to see a number of upside risks to inflation.”
Reuters•
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