Fed’s Bowman supports current monetary policy, but still sees inflation risks

The inflation should continue to decline although the United States Central Bank maintains its reference interest rate at current levels, Federal Reserve Governor Michelle Bowman said on Friday, reiterating her willingness to raise the official rate if progress stagnates or reverses.

“My baseline view remains that inflation will continue to decline if the policy rate is maintained, but I still see a number of upside risks affecting my outlook,” Bowman said in a speech prepared for a banking conference in Key Biscayne. , in the state of Florida.

“Although the current stance of monetary policy appears to be at a restrictive level, I remain willing to raise the federal funds rate at a future meeting if the data indicate that progress (in reducing) inflation has stalled or has regressed,” Bowman added.

In his speech, Bowman made clear that he expects inflation to remain high for some time, highlighting a number of factors that could prevent it from falling back toward the Federal Reserve’s 2% target.

[Con información de Reuters]

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