HomeTop U.S. NewsMore Rate Hikes Needed, Federal Reserve Governor Insists

More Rate Hikes Needed, Federal Reserve Governor Insists

On Monday, Federal Reserve Governor Michelle Bowman doubled down on her stance that further interest rate hikes may be necessary despite an influx of cooler inflation data and a tighter labor market.

“I supported raising the federal funds rate at our July meeting, and I expect that additional increases will likely be needed to lower inflation to the FOMC’s goal,” Bowman explained at a Fed Listens event at the Atlanta Fed. Bowman added that she would be on the lookout for further evidence that inflation is on a consistent downward path before calling for the Fed’s aggressive money-tightening campaign to come to a halt.

Still, Bowman offered signs of hope that the end is in sight for the Fed’s rate hikes. The governor stated that she felt encouraged by the recent inflation readings from the Consumer Price Index (CPI) and the Personal Consumption Expenditures (PCE) Price Index, however, more downward movements would be needed to prove that inflation is indeed headed for the Fed’s 2% inflation target. Bowman admitted that she does believe that the central bank is nearing what its peak rate would be since the start of the inflation crisis.

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