In a speech today, Fed Michelle Bowman underscored that more action would be necessary to bring inflation under control.
She noted, “I believe that additional policy rate increases will be necessary to bring inflation down to our target over time.”
While acknowledging the influence of the current tighter monetary policy on both economic activity and inflation, she pointed out that “core inflation essentially plateau since the fall of 2022.”
She suggested Fed would need to raise interest rate to a “sufficiently restrictive stance of monetary policy to meaningfully and durably bring inflation down.”
