Federal Reserve Governor Michelle Bowman advises against policy changes due to inflation risks, urging caution and vigilance while monitoring data.

Federal Reserve Governor Michelle Bowman warned against changing the US central bank's policy due to ongoing upside risks for inflation, suggesting caution and vigilance while monitoring incoming data to ensure rate adjustments do not become overly restrictive. Bowman's stance aligns with her hawkish tendencies, as she did not commit to raising rates further or endorsing a rate cut at the Fed's upcoming meeting on 17-18 September. She believes that if inflation falls towards the Fed's 2% target, a gradual lowering of the federal funds rate may be appropriate.

August 20, 2024
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