What is Fed Vice Chair Michelle Bowman's stance on interest rates?

Bowman supports keeping policy restrictive for now and adopting a measured pace for any future interest rate adjustments.

When does Michelle Bowman expect inflation to reach the Fed's target?

Bowman is confident that inflation will return to the Fed's 2% target as the effects of tariffs fade.

How does Bowman view the current labor market?

Bowman believes the labor market remains vulnerable, although she has observed some signs of stabilization.

Home / Business and Economy / Bowman: Fed to 'keep powder dry' on rates

Bowman: Fed to 'keep powder dry' on rates

31 Jan

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Summary

Bowman supports a measured pace for interest rate adjustments.
She anticipates inflation will return to the Fed's 2% target.
Bowman favors keeping policy restrictive for now.

Bowman: Fed to 'keep powder dry' on rates

Federal Reserve Vice Chair for Supervision Michelle Bowman has indicated support for maintaining current interest rate levels, emphasizing the benefit of a measured pace for policy adjustments this year. She stated that the Fed can afford to "keep policy powder dry" after reducing rates by 75 basis points in the latter part of last year.

Bowman is confident that inflation will ultimately return to the Federal Reserve's 2% target, particularly as the effects of tariffs diminish. While she notes some signs of stabilization, she continues to view the labor market as vulnerable. Her preference is to proceed cautiously, allowing time to assess how existing policy restraint influences financial conditions and strengthens the labor market.

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