MNI BRIEF: Fed's Bowman Says More Rate Hikes Needed

The Federal Reserve needs to continue to raise interest rates in order to bring inflation back to the central bank's target rate, Fed Governor Michelle Bowman said on Friday.

"We'll have to continue to raise the federal funds rate until we start to see a lot more progress" on reaching the 2% inflation objective, she said at a Tennessee Bankers Association Credit Conference. "I don't think anyone can argue that inflation is much too high."

"I don't think we're seeing what we need to be seeing, especially with inflation," she added. "Those numbers are jumping around a little bit. We're seeing some progress and lowering inflation at the end of last year, but some of the data that we're seeing early this year is is not dropping consistently." (See: MNI: Fed’s Peak Rate Looking Perkier As Jobs Boom-Ex-Officials)