Comments by Fed Governor Michelle Bowman:
- We have not yet reached the point where it is appropriate to lower interest rates.
- If the data show that inflation is moving sustainably to 2%, it will eventually become appropriate to gradually reduce the interest rate.
- The basic forecast still indicates that inflation will return to 2% with the interest rate remaining fixed for some time.
- Ready to raise the target rate at a future meeting if the progress of inflation stops or reverses.
- He will remain cautious in dealing with future changes in policy position.
- Other central banks may ease monetary policy sooner or more quickly than the Fed.
- This year we have seen only additional modest progress in terms of inflation in the United States.
- We expect inflation in the US to remain high for some time. - You still see a number of bullish inflation risks.
- The US labor market remains tight despite some additional rebalancing.
Bowman is considered a Federalist hawk, so such comments are not surprising. The markets are now pricing in a 90% probability of no change at the next meeting at the end of July.
