Fed’s Bowman Favors Hiking Rates If Inflation Progress Stalls
- Governor says recent progress on inflation has been uneven
- Future rates may need to stay higher than pre-Covid, she says
Michelle Bowman.
Photographer: Al Drago/BloombergThis article is for subscribers only.
Federal Reserve Governor Michelle Bowman said she expects to support additional tightening of monetary policy to return inflation to the central bank’s goal.
“My baseline economic outlook continues to expect that we will need to increase the federal funds rate further to keep policy sufficiently restrictive to bring inflation down to our 2% target in a timely way,” Bowman said in a speech in Salt Lake City, Utah. “However, monetary policy is not on a preset course, and I will continue to closely watch the incoming data as I assess the implications for the economic outlook and the appropriate path of monetary policy.”