Fed Gov. Bowman monitoring data to assess if policy is sufficiently restrictive

Fed Gov. Bowman is speaking and says:

  • Monitoring data to assess policy is sufficiently restrictive.
  • Baseline Outlook that inflation will decline further with policy rate steady but sees risks.
  • Remain cautious in rate change decisions, willing to hike if inflation progress stalls or reverses.
  • Inflation to remain elevated for some time.
  • We have not yet seen further progress on inflation this year.
  • Inflation’s decline in latter half of last year was temporary.
  • US economic activity may have moderated but consumer services spending strong, business investment strengthened.
  • Progress on labor market rebalancing has slowed.
  • Focusing on issues like climate change could distract bank management and supervisors.

Fed Gov. Bowman is a permanent voting member on the Federal Reserve Board. Her comments are more hawkish.

US yields are trading at at session highs:

  • 2-year yield 4.818%, +2.7 basis points
  • 5-year yield 4.436%, +3.7 basis points
  • 10 year yield 4.414%, +3.7 basis points
  • 30-year yield 4.552%, +3.5 basis points

both the S&P and NASDAQ index are now in negative territory. The S&P is down -5.0 points or -0.11%. The NASDAQ index is down -21 points or -0.13%

This article was written by Greg Michalowski at www.forexlive.com. Source