Federal Reserve Governor Bowman: Progress towards achieving the inflation target appears to have stalled
Federal Reserve Governor Bowman stated that inflation remains above the 2% target, and progress on interest rate cuts appears to have stalled. She is cautious about lowering interest rates, emphasizing that the inflation target has not yet been achieved and is paying attention to changes in the labor market. Bowman believes that the neutral policy interest rate is higher than pre-pandemic levels, and while interest rate cuts are not constrained, there are greater risks to price stability
On November 21st, Jin Shi Data reported that Federal Reserve Governor Bowman expressed unease about lowering interest rates while inflation remains above the 2% target, adding more nuance to her calls for a cautious rate cut. "We are recalibrating policy, but we have not yet achieved our inflation target, which concerns me," she said. Bowman indicated that progress towards the Federal Reserve's 2% target appears to have stalled due to persistently high inflation rates. "I tend to cautiously lower the policy interest rate to better assess how far we are from the finish line, while recognizing that we have not yet achieved our inflation target and closely monitoring the evolution of the labor market." She believes that the neutral policy interest rate is significantly higher than before the COVID-19 pandemic, and the Federal Reserve is not constrained in lowering rates again as the market currently expects. She also noted that the greater risk facing the Federal Reserve is the price stability target, although a deterioration in labor conditions is also possible