U.S. Federal Reserve Governor Michelle Bowman spoke on Saturday at a Kansas Bankers Association event in Colorado.
Key takeaway comment:
- "I supported the FOMC's decision last week to raise the federal funds rate another 75 basis points. My view is that similarly-sized increases should be on the table until we see inflation declining in a consistent, meaningful, and lasting way."
Bowman says she is seeing few, if any, signs of peak inflation and that she supports further rate hikes until a major decline is seen. Until then 75bp hikes are possible.
More:
- supply issues will continue to drive inflation
- there are significant inflation risks for food, fuel, & housing in 2023
- I want unequivocal inflation cooling before modifying my outlook
- inflation is much too high
- inflation is putting a strain on households, excessive inflation is a bigger threat to the labour market
- says she sees a possibility of FOMC steps slowing or even halting growth in jobs
- a pickup in H2 GDP, and then modest growth next year, is the base case
- labour market is tight, but there are signs easing
Michelle Bowman is a member of the Fed's Board of Governors and is thus a voter at the Federal Open Market Committee (FOMC).
