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MNI: Fed's Bowman Cites Lingering Inflation Concern In Dissent

Governor Miki Bowman wanted a smaller first rate cut this week.

Federal Reserve Governor Michelle Bowman said Friday she preferred a smaller interest rate cut this week to start the Fed's easing cycle because inflation remains a concern.

"Although it is important to recognize that there has been meaningful progress on lowering inflation, while core inflation remains around or above 2.5%, I see the risk that the committee’s larger policy action could be interpreted as a premature declaration of victory on our price stability mandate," she said in a statement.

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Federal Reserve Governor Michelle Bowman said Friday she preferred a smaller interest rate cut this week to start the Fed's easing cycle because inflation remains a concern.

"Although it is important to recognize that there has been meaningful progress on lowering inflation, while core inflation remains around or above 2.5%, I see the risk that the committee’s larger policy action could be interpreted as a premature declaration of victory on our price stability mandate," she said in a statement.

Keep reading...Show less