Fed’s Bowman: It will ‘likely be appropriate’ to hike further

  • It will likely be appropriate to raise rates further and hold them at restrictive level for some time
  • Inflation remains too high
  • Sees risk that high energy prices could reverse some of the recent progress on lowering inflation
  • Frequency and scope of recent data revisions complicates task of projecting how economy will evolve
  • Expects progress to be slow on inflation given the current level of monetary policy restraint
  • Remains willing to support rate increase at a future meeting if data indicates progress on inflation has stalled or is too slow to return it to 2% in a timely way
  • Regulators seem to be engaging in ‘heavy-handed’ supervision of banks

Heavy-handed supervision? Does she remember what happened in March?

As for her comments on monetary policy, I they’re nothing new. She’s been hawkish for awhile and the rest of the FOMC appears to be headed in her direction.

This article was written by Adam Button at www.forexlive.com. Source