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Bowman – Labor Market Re-Balancing Has Slowed

FED

Fed Governor Bowman (voter) has released unscheduled remarks ahead of a banking-focused event. Full remarks here.

  • "As I've noted recently, my baseline outlook continues to be that inflation will decline further with the policy rate held steady, but I still see a number of upside inflation risks that affect my outlook."
  • She repeats that she’s willing to hike if inflation stalls or reverses.
  • She sees policy as being restrictive but is monitoring to see if its sufficiently so.
  • “Although we have seen signs that the labor market is coming into better balance, progress has slowed.”
  • "With average core consumer price index (CPI) inflation this year through April running at an annualized rate of 4.3%, well above average inflation in the second half of last year, I expect inflation to remain elevated for some time,"

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