Fed’s Bowman says 75 basis point hikes should be on the table until inflation falls

Federal Reserve Governor Michelle Bowman spoke at a Kansas Bankers Association event in Colorado on Saturday.

Key takeaway note:

  • “I supported the FOMC’s decision last week to raise the federal fund rate by an additional 75 basis points. I believe that similarly sized increases should be on the table until we see inflation in a consistent, meaningful and sustainable way. drops.”

Bowman says she sees little or no signs of peak inflation and will support further rate hikes until a major decline is observed. Until then, hikes of 75 bp are possible.

More:

  • supply problems will continue to drive inflation
  • there are significant inflation risks for food, fuel and housing in 2023
  • I want unequivocal inflation cooling before adjusting my outlook
  • inflation is way too high
  • inflation puts pressure on households, excessive inflation is a greater threat to the labor market
  • says she sees a possibility that FOMC moves slow or even halt job growth
  • GDP rebound in H2 and then modest growth next year is the base case
  • labor market is tight, but there are signs of easing

Michelle Bowman is a member of the Fed’s board of directors and thus an elector of the Federal Open Market Committee (FOMC).

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