Member of the United States Federal Reserve Board of Governors Michelle Bowman remarked on Tuesday that the institution should be "cautious" when it comes to making future monetary policy decisions and that it will cut its key interest rate before it is clear inflation is on the way to the 2% target.
Speaking at the Florida Bankers Association Leadership Luncheon Events in Miami, Florida, Bowman warned that reducing the rates too early could lead to new increases. She also noted that most recent reports show that inflation is going down but at a slow pace.
Furthermore, Bowman said she expects prices to keep falling if the central bank keeps the rates steady, but also warned of potential inflationary risks.
