It will likely be appropriate to raise the policy rate further and hold it at restrictive levels for some time, Federal Reserve Governor Michelle Bowman said on Monday, as reported by Reuters.
Key takeaways
“Inflation remains too high.”
“Seeing risk that high energy prices could reverse some of the recent progress on lowering inflation.”
“Frequency and scope of recent data revisions complicates task of projecting how economy will evolve.”
“Expecting progress on inflation to be slow given the current level of monetary policy restraint.”
“Willing to support rate increase at a future meeting if data indicates progress on inflation has stalled or is too slow to return to it to 2% in a timely way.”
“Regulators seem to be engaging in heavy-handed supervision of banks, should consider if approach is appropriate.”
Market reaction
The US Dollar Index showed no immediate reaction to these comments and was last seen rising 0.55% on the day at 106.75.
Source: https://www.fxstreet.com/news/feds-bowman-will-likely-be-appropriate-to-raise-rates-further-202310021433