Central Banks
Bowman Says She Expects Fed Will Need to Increase Rates Further
- Bowman says yield surge has tightened financial conditions
- Fed governor says open to hikes if inflation progress stalls
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Federal Reserve Governor Michelle Bowman said she continues to think the central bank will need to raise interest rates higher to contain inflation, but added a surge in Treasury yields since September has led to tighter financial conditions.
“I continue to expect that we will need to increase the federal funds rate further to bring inflation down to our 2% target in a timely way,” Bowman said in prepared remarks Tuesday at an event hosted by the Ohio Bankers League.