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MNI: Fed Rate Cuts Needed If Inflation Keeps Falling - Bowman

Fed Governor Michelle Bowman says the labor market is "coming into better balance."

Federal Reserve Governor Michelle Bowman said Tuesday the Fed should cut interest rates if inflation continues to move towards the central bank's 2% goal, noting further welcome progress on inflation in the past couple months in spite of upside risks.

"My baseline outlook is that inflation will decline further with the current stance of monetary policy. Should the incoming data continue to show that inflation is moving sustainably toward our 2% goal, it will become appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive on economic activity and employment," Bowman said in remarks prepared for the Alaska Bankers Association.

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Federal Reserve Governor Michelle Bowman said Tuesday the Fed should cut interest rates if inflation continues to move towards the central bank's 2% goal, noting further welcome progress on inflation in the past couple months in spite of upside risks.

"My baseline outlook is that inflation will decline further with the current stance of monetary policy. Should the incoming data continue to show that inflation is moving sustainably toward our 2% goal, it will become appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive on economic activity and employment," Bowman said in remarks prepared for the Alaska Bankers Association.

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