MNI BRIEF: Fed's Bowman Wants Inflation Progress Before Cuts
MNI (WASHINGTON) - Federal Reserve Governor Michelle Bowman said Friday she would need to see more inflation progress before the Fed cuts interest rates again this year, adding she continues to see greater risk to the central bank's price stability mandate than its employment one.
"There is still more work to be done to bring inflation closer to our 2% goal. I would like to see progress in lowering inflation resume before we make further adjustments to the target range. We need to keep inflation in focus while the labor market appears to be in balance and the unemployment rate continues to be at historically low levels," she told a business conference in Portsmouth, New Hampshire. "I continue to prefer a cautious and gradual approach to adjusting policy."
"By the time of our March meeting, we will have received two inflation and two employment reports. I look forward to reviewing the first quarter inflation data, which, as I noted earlier, will be key to understanding the path of inflation going forward. I do expect that inflation will begin to decline again and that by year-end it will be lower than where it now stands." (See: MNI POLICY: Fed To Hold Door Open To Steady Rate Cut Path)