United States Federal Reserve Governor Michelle Bowman stated Friday that she still sees several "upside risks” and "uncertainties" related to the inflation levels for what she considers it is still not the time "where it is appropriate to lower the policy rate."
"While it is not my baseline outlook, I continue to see the risk that at a future meeting we may need to increase the policy rate further should progress on inflation stall or even reverse […] Reducing our policy rate too soon or too quickly could result in a rebound in inflation, requiring further future policy rate increases to return inflation to 2 percent over the longer run,” she said during a speech in New York.
She added that "the level of the federal funds rate consistent with low and stable inflation" may end up being higher than before the pandemic.
