Fed’s Bowman Flags Inflation Risks, Encourages Cautious Approach
- Says she could’ve supported no action at latest Fed meeting
- Fed should avoid prejudging incoming administration’s policies
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Federal Reserve Governor Michelle Bowman said she sees lingering inflation risks and that policymakers should proceed cautiously with further interest-rate cuts.
“The rate of inflation declined significantly in 2023, but this progress appears to have stalled last year with core inflation still uncomfortably above the committee’s 2% goal,” Bowman said in prepared remarks Thursday for an event with the California Bankers Association. “I continue to prefer a cautious and gradual approach to adjusting policy.”