U.S. Federal Reserve Governor Michelle Bowman spoke on Saturday at a Kansas Bankers Affiliation occasion in Colorado.
Key takeaway remark:
- “I supported the FOMC’s determination final week to lift the federal funds price one other 75 foundation factors. My view is that similarly-sized will increase must be on the desk till we see inflation declining in a constant, significant, and lasting method.”
Bowman says she is seeing few, if any, indicators of peak inflation and that she helps additional price hikes till a serious decline is seen. Till then 75bp hikes are doable.
- provide points will proceed to drive inflation
- there are vital inflation dangers for meals, gasoline, & housing in 2023
- I need unequivocal inflation cooling earlier than modifying my outlook
- inflation is far too excessive
- inflation is placing a pressure on households, extreme inflation is an even bigger risk to the labour market
- says she sees a risk of FOMC steps slowing and even halting progress in jobs
- a pickup in H2 GDP, after which modest progress subsequent yr, is the bottom case
- labour market is tight, however there are indicators easing
Michelle Bowman is a member of the Fed’s Board of Governors and is thus a voter on the Federal Open Market Committee (FOMC).