Fed Governor Bowman: If inflation continues to fall, he will support rate cuts
On August 21, Federal Reserve Governor Bowman stated that she still believes there are upside risks to inflation, but if price growth continues to slow, it would be appropriate for the Federal Reserve to begin gradually lowering interest rates.
In her remarks, she stated that if future data continues to show that inflation is progressing towards our 2% target, it would be appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive.
Bowman believes that "some further progress has been made in reducing inflation" in recent months, but upside risks remain due to "heightened geopolitical tensions, additional fiscal stimulus measures, and increased housing demand driven by immigration." Additionally, she stated that the labor market continues to loosen, and there are signs that the labor market is trending towards better balance.
