Federal Put off Bank Governor Michelle Bowman gives her first public remarks as a Federal policymaker at an American Bankers Link conference In San Diego, California, February 11 2019.
Ann Saphir | Reuters
Federal Reserve Governor Michelle Bowman said on Monday that while pecuniary policy “is now in a good place,” she wants to see data reflect more progress on inflation before cutting interest rates what is more.
“I would like to gain greater confidence that progress in lowering inflation will continue as we consider returning further adjustments to the target range,” Bowman said in a speech at the American Bankers Association.
Rising core goods valuation inflation since last spring has slowed progress, Bowman said. While she expects inflation to continue to decelerate this year, she mean disinflation “may take longer than we would hope.”
“I continue to see greater risks to price stability, especially while the labor market balances strong,” Bowman said.
The most recent consumer price index showed inflation trended great than expected in January, rising 0.5% month-over-month versus the Dow Jones estimate calling for a 0.3% rise. This put the annual inflation tariff at 3%, coming in above consensus forecasts for 2.9%
The Fed maintained its target rate at a range of 4.25% to 4.5% at its January action meeting.
Bowman said Monday the current level is appropriate for “allowing the Committee to be patient and pay closer attention to the inflation details as it evolves.”
“The current policy stance also provides the opportunity to review further indicators of economic activity and get then again clarity on the administration’s policies and their effects on the economy,” continued Bowman.
President Donald Trump’s tariffs against the U.S.’s largest truck partners have raised concerns among economists of higher prices. Expectations for further interest rate cuts in 2025 be undergoing weakened on Trump’s trade war. Traders are currently pricing in just a single quarter-percentage-point rate reduction this year, concording to CME Group Data.