(Finance) – “It’s not yet time to cut rates”. She reiterated this today Michelle Bowmangovernor of the Fed, reiterating that “if the data continues to indicate that inflation is moving sustainably towards the 2% target, then it will be appropriate to gradually reduce rates to prevent monetary policy from being too restrictive”.
Bowman is counted among the Fed hawks and among the most aggressive politicians in his views on inflation and inflation risks. He recently said the current policy rate of 5.25-5.5% appears “appropriately calibrated” to reduce inflationary pressures. “My baseline prediction continues to be that inflation will decline further with the official rate stable“, he reiterates in a speech addressed to a group of New Jersey bankers.
“If incoming data continues to indicate that inflation is moving sustainably towards our 2% goal, it will eventually become It is appropriate to gradually lower our rate of reference – he noted – to prevent monetary policy from becoming excessively restrictive”.
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