United States Federal Reserve Governor Michelle Bowman said on Friday that she still expects that additional increases to the federal funds rate "will likely be needed to return inflation to 2 percent in a timely way." Addressing the Independent Community Bankers of Colorado, she pointed to the latest Summary of Economic Projections by the Fed that showed that the "median" policymaker projected an inflation rate over 2% "at least until the end of 2025."
"This, along with my own expectation that progress on inflation is likely to be slow given the current level of monetary policy restraint, suggests that further policy tightening will be needed," she noted.
Bowman also stated that she detects risks related to energy prices but added that "the economy has remained strong" with indications that "labor market supply and demand may be coming into better balance."
