Bowman Continues To Expect Need To Hike Further

Gov. Bowman (voter) maintained her hawkish stance in prepared remarks at the 2023 Ohio Bankers League (full here).

• She supported the FOMC’s decision last week to hold rates unchanged but continues to expect that the Fed will need to hike further “to bring inflation down to our 2 percent target in a timely way”.
• On inflation: "Some components of core services inflation have picked up, and I see a continued risk that core services inflation remains stubbornly persistent. In my view, there is also a risk that higher energy prices could reverse some of the progress made to bring overall inflation down,"
• On financial conditions: “Currently, the federal funds rate appears to be restrictive, and financial conditions have tightened since September. Some of this tightening has occurred through longer term bond yields, which can be volatile over time as conditions change. We don't yet know the effects of tightened financial conditions on economic activity and inflation.”