Michelle Bowman, member of the Federal Reserve Board of Governorsstated on Tuesday that the Fed will have to raise interest rates further to combat high inflationas reported by Reuters.
His comments, made in a speech to a group of banks in Florida, follow a series of hawkish remarks by previous central bank spokesmen this week.
Featured Statements
“Inflation is too high.”
“We have a lot of work to do.”
“I expect the FOMC to continue raising interest rates to tighten monetary policy, as we said after our December meeting.”
“The pace of future actions will depend on how the economy performs.”
“Once we reach a sufficiently restrictive fed funds rate, it will need to stay at that level for some time to restore price stability.which in turn will help create the conditions that support a strong and sustainable labor market.”
“I take it as a hopeful sign that we can manage to bring inflation down without a significant economic downturn.”
“While the effects of monetary policy tightening on the labor market have been generally limited so far, the slowdown in the economy will likely mean that job creation will also slow down.”
“To know if inflation has fallen enough for the Fed to stop raising rates, you’ll look for strong signs that inflation has peaked and stronger signs that inflation is on a downward path.”
US dollar reaction
The DXY Index trades around 103.25, flat on the day in the middle of the 103.03/49 range. However, it has recovered from a seven-month low of 102.9 in the previous session, as hawkish comments from Fed policymakers this week have sparked a fresh surge in demand for the dollar.
San Francisco Fed President Mary Daly signaled yesterday that she expects interest rates to rise above 5% in 2023. The same day, Raphael Bostic argued that policymakers should rise above 5% early second quarter and keep rates there for a long time.
Source: Fx Street

I am Joshua Winder, a senior-level journalist and editor at World Stock Market. I specialize in covering news related to the stock market and economic trends. With more than 8 years of experience in this field, I have become an expert in financial reporting.