Bowman urges Fed to assess latest rate hike before moving again
The Fed governor said policymakers should gauge the latest rate increase’s effect on financial conditions before deciding on further action, despite inflation remaining above target.
Key takeaways
- Bowman said the Fed should assess the latest rate increase’s effects before making another policy move.
- She said inflation remains above the Fed’s target but saw no need to rush into another rate change.
Federal Reserve Governor Michelle Bowman said the Fed should take time to assess the financial effects of its latest interest-rate increase before making another policy move.
She said policymakers should monitor financial conditions before deciding on further action. That assessment should come before the Fed’s next rate decision, according to Bowman.
Inflation remains above the Fed’s target, she said, but Bowman sees no need to rush into another change to the policy rate under current conditions. She reiterated that officials should allow time to evaluate the latest tightening step.
This article was produced with the help of AI technology. Based on reporting by the outlets listed above.
