Fed Governor Bowman warns against lowering interest rates too soon, citing potential inflation risks.

Federal Reserve Governor Michelle Bowman warned that inflation progress may have stalled, urging caution in lowering interest rates to avoid reigniting inflation. Bowman, who dissented on the September rate cut, believes the neutral interest rate level may be closer than policymakers think. On the other hand, Governor Lisa Cook is more optimistic, predicting inflation will drop to around 2.2% next year. The differing views will influence the Fed's decision at their December meeting, where the odds of a rate cut have fallen to 55%.

November 20, 2024
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