Fed Governor Michelle Bowman said in a speech, ” I support raising the federal funds rate at our next meeting in March and, if the economy evolves as I expect, additional rate increases will be appropriate in the coming months.”
However, “I will be watching the data closely to judge the appropriate size of an increase at the March meeting,” she added.
“In the coming months, we need to take the next step, which is to begin reducing the Fed’s balance sheet by ceasing the reinvestment of maturing securities already held in the portfolio,” she added. “Returning the balance sheet to an appropriate and manageable level will be an important additional step toward addressing high inflation.”
