Fed's Bowman Sees Need for Further Rate Hikes Even as Powell Signals Possible Pause
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Fed Governor Michelle Bowman expects further interest rate hikes will be needed to bring down inflation. Her baseline outlook sees rates needing to rise more.
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The Fed kept rates unchanged at the last two meetings. Chair Powell has signaled willingness to pause rate hikes if inflation progress continues.
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Bowman has repeatedly been in the minority of policymakers saying the Fed's inflation-fighting job is not yet done.
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It remains uncertain if supply improvements and tighter policy will be enough to lower inflation amid other conflicting economic factors.
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Bowman says the neutral fed funds rate consistent with low, stable inflation may need to be higher than pre-pandemic due to structural economic changes.