(Finance) – “While continuing to expect that we will have to raise the federal funds rate further to bring inflation back to our target 2% in a timely manner, I supported the FOMC’s decision last week to keep the target range at the current level as we continue to evaluate incoming information and its implications for the outlook.” Michelle Bowmanwho serves on the Board of Governors of the Federal Reserve, at an event in Columbus, Ohio.
“Currently, the federal funds rate appears to be restrictive and financial conditions have become more restrictive since September,” he added. “Part of this tightening has occurred through long-term bond yields, which can be volatile over time as conditions change. We do not yet know the effects of tightening financial conditions on economic activity and inflation. Furthermore, there is a unusually high level of uncertainty about the economy and the economic outlook, above all considering recent data surprises, data revisions and geopolitical risks in progress”.
“It’s important to note that monetary policy does not follow a set path,” Bowman said. “My colleagues and I will take our decisions. decisions in each meeting based on incoming data. However, I remain willing to support raising the federal funds rate at a future meeting if incoming data indicates that progress on inflation is stalling or is not sufficient to bring inflation to 2% in timely manner”.