Fed Gov. Michelle Bowman is speaking and says:
- Will remain cautious on monetary policy
- If inflation moves sustainably to 2% goal, it will eventually be appropriate to cut interest rates; not yet there
- Reducing policy rate too soon could result in need for future rate hikes
- She remains willing to raise policy rate if inflation progress stalls or reverses
- Latest inflation data suggests slower progress on inflation
- Economic activity and consumer spending are strong, labor market ‘tight’
Bowman is a permanent voting member as the governor on the Federal Reserve Board. Her comments are consistent with delaying tightening. The market is pricing in around 63% chance of a cut in June.
This article was written by Greg Michalowski at www.forexlive.com. Source