Fed's Bowman sees no interest rate cuts this year
foxbusiness.com'The Claman Countdown' panelists Kate Moore and Joseph LaVorgna predict the Federal Reserve's interest rate moves and the yield curve's normalization.
Federal Reserve Governor Michelle Bowman said Tuesday that she does not expect to cut interest rates before the end of the year – and remains willing to hike again if progress on inflation stalls.
«We are still not yet at the point where it is appropriate to lower the policy rate,» Bowman said during a prepared speech in London.
Reducing rates too soon could risk reigniting high inflation, she warned, which would require additional rate increases in order to tame price pressures within the economy. In a discussion following her speech, Bowman said she does not project any rate cuts happening this year, and has instead shifted those into future years.
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Bowman – who is a voting member of the 12-person Federal Open Market Committee – also reiterated that she is willing to tighten monetary policy further if there is evidence that progress on inflation is slowing.
Federal Reserve Governor Michelle Bowman delivers remarks at an American Bankers Association conference in San Diego, California, on Feb. 11 2019. (Reuters / Reuters)
«I remain willing to raise the target range for the federal funds rate at a future meeting should progress on inflation stall or even reverse,» she said. «Given the risks and uncertainties regarding my economic outlook, I will remain cautious in my approach to considering future changes in the stance of policy.»
Officials voted at their most recent meeting in May to hold interest rates steady at a range of 5.25% to 5.5%, the highest level since 2001. Although policymakers left the door open to rate
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