Governor of the Federal Reserve Bank Michelle Bowman presents his first public comments as a federal decision -maker at the American Bankers Association conference at San Diego, California, February 11, 2019.
Ann Saphir Reuters
Federal Reserve Governor Michelle Bowman said on Monday that although monetary policy “is now in a good place”, he wants the data to reflect greater progress in inflation before further reduction of interest rates.
“I would like to get more confidence that progress in lowering inflation will persist because we are considering further adaptation of the target range,” said Bowman in a speech at the American Bankers Association.
Bowman said that the growing inflation of spinal prices has slowed down your progress since last spring. Although she expects inflation to continue this year, she said that disinflation may take longer than we could expect. ”
“I still see a greater risk of price stability, especially when the work market remains strong,” said Bowman.
Latest Consumer price indicator He showed that inflation is more popular than expected in January, increases by 0.5% of the month compared to the estimation of Dow Jones calling for a 0.3% growth. This caused that the annual inflation rate of 3%, reaching the above consensus forecasts for 2.9%
The FED has maintained its target indicator in the range of 4.25% to 4.5% at the January political meeting.
Bowman said that on Monday the current level is suitable for “permission to the Committee for patience and paying closer attention to inflationary data as evolved.”
“The current political position also gives the opportunity to review further indicators of economic activity and obtain further transparency of administration policy and its impact on the economy,” continued Bowman.
President Donald Trump's tariffs towards the largest trading partners in the US have raised concerns among economists at higher prices. Expectations regarding further interest rate reductions in 2025 weakened during the Trump trade war. According to traders, they currently value only one quarter of an hour reduction of interest rates this year, according to CME group data.