Fed Governor Michelle Bowman sad in a speech over the weekend, she supported Fed’s 75bps rate hike in July, as well as the view that “ongoing increases” would be appropriate at “coming meetings”.
“My view is that similarly-sized increases should be on the table until we see inflation declining in a consistent, meaningful, and lasting way,” she added.
Bowman saw a “significant risk of higher inflation into next year for food, housing, fuel, and vehicles.” And, the supply problems seem “likely to persist”. But job market was tight with unemployment rate finally returning to the pre-pandemic level of 3.5%. Her base case is for a pickup in growth during H2, and for moderate growth in 2023.
