Fed: Latest data suggests slower inflation growth – Michelle Bowman

According to Michelle Bowman, a member of the Board of Governors of the Federal Reserve (Fed), the slower-than-expected progress in inflation has made the Fed cautious about the direction of its monetary policy.

Highlights

• The latest inflation data suggests slower progress in inflation.
• The Fed's Michelle Bowman expects inflation to continue to decline at current policy rates.
• Upside risks to inflation persist.
• The Fed's monetary policy remains appropriately restrictive.
• Economic activity and consumer spending remain strong, and the labor market remains tight.
• If inflation moves steadily toward the 2% target, it will eventually be appropriate to cut rates, but that time has not yet come.
• The Fed's Michelle Bowman remains willing to raise interest rates if inflation stagnates or reverses.
• Remains cautious regarding monetary policy.