Federal Reserve Governor Michelle Bowman made his first public remarks at the American Bankers Association meeting in San Diego, California on February 11, 2019.
Ann Saphir | Reuters
Federal Reserve Governor Michelle Bowman said on Monday that while monetary policy is “in a good place now,” she hopes to see data reflecting the progress of inflation before further reducing interest rates.
“I want to be more confident that progress to reduce inflation will continue as we consider further adjustments to the target scope,” Bowman said in a speech by the American Bankers Association.
Core price inflation has been increasingly lower since last spring, Bowman said. Although she expects inflation to continue to slow down this year, she said the dissolution “may take longer than we hoped.”
“I continue to see greater risks to price stability, especially when the labor market remains strong,” Bowman said.
Latest Consumer Price Index Showing inflation is higher than January’s forecast, with the Dow Jones estimate of 0.3%, up 0.3% per month. This puts annual inflation at 3%, with a consensus forecast of 2.9% higher than consensus forecast
The Fed kept its target interest rate in the range of 4.25% to 4.5% at its policy meeting in January.
Bowman said on Monday that the current levels are suitable for “allowing the committee to remain patient and keep an eye on the development of inflation data.”
“The current policy stance also provides opportunities to review further indicators of economic activity and to further clarify the government’s policies and their impact on the economy,” Bowman continued.
President Donald Trump’s tariffs on the U.S.’s largest trading partner have attracted the attention of economists at higher prices. Expectations for further interest rate cuts in 2025 have weakened Trump’s trade war. According to this year’s traders are currently pricing at just a single quarter percentage point rate. CME group data.
