Federal Reserve Governor Bowman: If inflation continues to decline, it will support interest rate cuts

ChainCatcher message, Federal Reserve Governor Bowman stated that she still believes there are upward risks to inflation, but if price growth continues to slow, it would be appropriate for the central bank to gradually lower interest rates.

In her remarks, she indicated that if future data continues to show that inflation is moving toward our 2% target, then gradually lowering the federal funds rate to prevent monetary policy from becoming overly restrictive would be appropriate.

Bowman believes that there has been "some further progress in reducing inflation" in recent months, but upward risks remain due to "escalating geopolitical tensions, additional fiscal stimulus, and increased housing demand driven by immigration." Additionally, she noted that the labor market continues to loosen, with signs indicating that the labor market is moving toward a better balance.