A second Fed governor is speaking. FOMC member Bowman is on the wires saying:
- Further interest rate increases likely appropriate with inflation "still too high."
- Fed policy will need to be held at a restrictive level "for some time" to return inflation to 2% "in a timely way."
- Continued risk of further increase in energy prices could reverse some of the recent progress on lowering inflation.
- Economy still growing at a "solid pace," with robust consumer spending and solid job gains.
- Bank lending standards have tightened but no sign of a "sharp contraction" of credit that would significantly slow the economy.
- Expect progress on inflation is "likely to be slow" under current conditions, suggesting the need for even tighter policy.
- It's imperative that bankers provide feedback on recent plans to toughen bank rules.
Bowman comments are a little more hawkish compared to Collins from earlier today. It is interesting she says that "further interest rate increases" - plural.
