Bowman: Likely Some Time Before Fed Can Cut Rates

Governor Bowman, a permanent voter and leading FOMC hawk, said in prepared remarks that it will likely be "some time" before the U.S. central bank can begin lowering interest rates, warning that U.S. monetary policy over the coming months could diverge from that of other advanced economies. Full speech here.

• "My baseline outlook continues to be that U.S. inflation will return to the FOMC’s 2% goal, with the target range of the federal funds rate held at its current level of 5.25% to 5.5% for some time”
• Bowman said she expects U.S. inflation to remain elevated for some time, even as continued softness in consumer spending and weaker housing activity early in the second quarter also suggest less momentum in economic activity so far this year.
• Repeated from last month: “I remain willing to raise the target range for the federal funds rate at a future meeting should progress on inflation stall or even reverse.”
• “I will remain cautious in my approach to considering future changes in the stance of policy. Reducing our policy rate too soon or too quickly could result in a rebound in inflation, requiring further future policy rate increases to return inflation to 2 percent over the longer run.”