🚨 Fed Governor Bowman: Inflation will remain high, and it is not appropriate to cut interest rates for the time being

📈 Reasons:

📊 Rising demand due to economic recovery

As the global economy gradually recovers from the epidemic, market demand has increased sharply, leading to rising prices of goods and services.

📊 Supply chain bottlenecks

The global supply chain is still facing bottlenecks, and transportation costs and raw material prices remain high, exacerbating inflationary pressures.

📊 Tight labor market

The tightness of the job market has pushed up wages, and companies have passed on the increased costs to consumers, further pushing up prices.

📈 Bowman's view:

Bowman believes that it is not yet the right time to cut interest rates because inflation is still high and more time is needed to observe the impact of the policy interest rate. He expects that as the policy interest rate remains unchanged for "some time", the inflation rate will gradually return to the target of 2%.

📈 For example:

For example, data from the U.S. Department of Labor showed that the Consumer Price Index (CPI) in May 2023 rose by 5.4% year-on-year, far above the target of 2%. At the same time, the global semiconductor shortage has not eased, and the prices of automobiles and electronic products continue to rise, further pushing up the overall inflation level.

📈 Market reaction:

After Bowman made the above remarks, the market's expectations for interest rate cuts in the short term have dropped significantly, leading to a correction in the stock market, while the US dollar index has strengthened. #美联储何时降息？