Federal Reserve Governor Bowman expressed concern on Wednesday about lowering interest rates while inflation remains above the 2% target, adding more weight to her calls for a cautious approach to rate cuts. "We are recalibrating policy, but we have not yet achieved the inflation target, which worries me," she said. Bowman indicated that progress towards the Fed's 2% target appears to have stalled due to the persistently high inflation rate, stating, "I tend to favor a cautious reduction in the policy rate to better assess how far we are from the finish line, while recognizing that we have not achieved the inflation target and closely monitoring the evolution of the labor market." She believes that the neutral policy rate is significantly higher than before the COVID-19 pandemic and that the Fed is not constrained in lowering rates again as the market currently expects. She also mentioned that the greater risk facing the Fed is the price stability target, although a deterioration in labor conditions is also possible.