According to BlockBeats, on August 21, Federal Reserve Governor Michelle Bowman expressed her ongoing concerns about inflationary pressures. She indicated that if price growth continues to decelerate, it would be appropriate for the Federal Reserve to begin gradually lowering interest rates.
In her remarks, Bowman stated that if future data consistently show inflation moving towards the Fed's 2% target, a gradual reduction in the federal funds rate would be suitable to prevent monetary policy from becoming overly restrictive. She acknowledged that there has been some progress in reducing inflation in recent months, but she cautioned that upward risks remain due to escalating geopolitical tensions, additional fiscal stimulus measures, and increased housing demand driven by immigration.
Bowman also noted that the labor market continues to ease, with signs indicating that it is moving towards a better balance. This observation suggests that the labor market is adjusting in a way that could support the Fed's efforts to manage inflation without causing undue economic strain.
