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Bowman - Still Not Yet Time To Lower Rates, Willing To Hike

FED
  • Fed Gov. Bowman (permanent voter) says it’s “still not yet” time to lower interest rates, expecting inflation to fall with rates held steady. Full remarks here.
  • She continues to see a number of upside risks to inflation though and remains willing to hike if inflation progress stalls (which isn’t her base case).
  • On today's jobs report for March: "payroll employment increased at a very strong pace in the first quarter"
  • Whilst the remarks shouldn’t be too surprising, with the position as the preeminent hawk on the FOMC and her expected dot showing no hikes for 2024, 2Y Treasuries do see a small sell-off although remain above lows seen after Logan’s “much too soon” to think about cuts from earlier.

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