Fed Governor Michelle Bowman said a speech, “if we do not see signs that inflation is moving down, my view continues to be that sizable increases in the target range for the federal funds rate should remain on the table.”
Nevertheless, “if inflation starts to decline, I believe a slower pace of rate increases would be appropriate.” Even so, “to bring inflation down in a consistent and lasting way, the federal funds rate will need to move up to a restrictive level and remain there for some time.”
“However, it is not yet clear how high we will need to raise the federal funds rate and how much time will pass before we begin to see inflation moving back down in a consistent and lasting way,” she added.
