Fed’s Bowman Sees Upside Inflation Risk, Signals Caution on Cuts
- Cites fiscal policy, geopolitics, pressure on housing market
- Powell has put rate cut on the table for September Fed meeting
This article is for subscribers only.
Federal Reserve Governor Michelle Bowman said she still sees upside risks for inflation and continued strength in the labor market, signaling she may not be ready to support an interest-rate decrease when US central bankers next meet in September.
“The progress in lowering inflation during May and June is a welcome development, but inflation is still uncomfortably above the committee’s 2% goal,” Bowman said Saturday in a speech to the Kansas Bankers Association in Colorado Springs, referring to the Fed’s rate setting panel. “I will remain cautious in my approach to considering adjustments to the current stance of policy.”