Fed's Bowman signals caution on rate cuts
Bowman said she still sees upside risks for inflation and continued strength in the labor market, signalling she may not be ready to support an interest-rate decrease when US central bankers next meet in September.
«The progress in lowering inflation during May and June is a welcome development, but inflation is still uncomfortably above the committee's 2% goal,» Bowman said Saturday in a speech to the Kansas Bankers Association in Colorado Springs, referring to the Fed's rate setting panel.
«I will remain cautious in my approach to considering adjustments to the current stance of policy.»
US fiscal policy, pressure on the housing market from immigration and geopolitical risks all could put upward pressure on prices, she said.
The Fed's preferred measure of inflation, the personal consumption expenditures price index, declined to 2.5% in the 12 months through June. As inflation has approached their goal, many officials have shifted more of their attention to the labour market, which has showed signs of deteriorating under the strain of high rates.
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