US 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 funds rate an additional 75 basis points. I think similar sized increases should be considered until we see inflation come down by consistent, meaningful and lasting way.”
Bowman says she sees little to no signs of peak inflation and supports further rate hikes until a significant drop is seen. Until then, increases of 75 basis points are possible.
- supply problems will continue to drive inflation
- there are significant inflation risks for food, fuel and housing in 2023
- I want an unequivocal cooling in inflation before changing my outlook
- inflation is way too high
- inflation weighs on households, excessive inflation threatens the labor market more
- says she sees possibility that FOMC measures will slow or even halt job growth
- a recovery in GDP in the second half, then modest growth next year, is the base case
- the labor market is tight, but there are signs of easing
Michelle Bowman is a member of the Fed Board of Governors and is therefore a voter on the Federal Open Market Committee (FOMC).