Fed Governor Michelle Bowman explained in a speech her support for keeping interest rates unchanged last month, citing the need for a patient approach while monitoring inflation developments.
She noted that after a 100 basis point rate adjustment through December, policy is now in a “good place,” allowing the Fed to “pay closer attention to the inflation data as it evolves.”
Bowman also highlighted the importance of assessing the impact of the administration’s policies on the broader economy, stressing the need for a “better sense of these policies” and their implementation.
On inflation, Bowman maintained a cautious outlook, expecting further moderation this year but warning that disinflation progress could remain “bumpy and uneven.” Bowman noted her concerns about “greater risks to price stability”, particularly with a still-strong labor market.
