Central Banks
Fed’s Bowman Sees Rates Moderating Soon But Higher Peak Level
- The Fed governor says she hasn’t seen much impact on inflation
- Peak rates could be ‘slightly higher’ than September estimate
Michelle Bowman
Photographer: Al Drago/BloombergThis article is for subscribers only.
Federal Reserve Governor Michelle Bowman said that while policymakers may soon moderate the pace of interest-rate hikes, persistent inflation may call for a higher peak rate than she had expected a few months ago.
“As we approach a sufficiently restrictive level of the federal funds rate, it will become appropriate for us to slow the pace of rate increases as we determine how high we need to raise the target range,” Bowman said at an event hosted by the KBW CEO strategy forum.