Central Banks
Fed’s Bowman Says Big Rate Cut Could Be Seen as Claiming Victory Too Soon
- Fed governor still concerned inflation running above target
- Contrasts with Waller saying inflation could go below target
Michelle Bowman
Photographer: Al Drago/BloombergThis article is for subscribers only.
Federal Reserve Governor Michelle Bowman said cutting interest rates by a half percentage point this week risked signaling the US central bank was declaring victory over inflation too early.
“The committee’s larger policy action could be interpreted as a premature declaration of victory on our price stability mandate,” Bowman said in a statement released Friday. “I believe that moving at a measured pace toward a more neutral policy stance will ensure further progress in bringing inflation down to our 2% target.”