Fed Governor Michelle Bowman expressed concerns over the recent slowdown in inflation reduction efforts, emphasizing that while there has been “considerable progress in lowering inflation since early 2023,” this progress “seems to have stalled in recent months.”
While acknowledging the complexity of monetary policy decisions, Bowman expressed particular concern about the price stability side of the Fed’s dual mandate, given that unemployment remains at historically low levels. “I see greater risks to the price stability side of our mandate, especially while the labor market remains near full employment,” she said in a speech.
Bowman is known for her hawkish stance on monetary policy. In September FOMC meeting, she dissented from the majority decision to cut rates by 50bps, advocating instead for a smaller 25bps reduction. Her comments reinforce her cautious approach toward easing monetary policy further, especially given the risks of persistent inflation in a strong labor market.
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