Fed/Bowman: We are not at a point to consider rate cuts

Fed Board Member Michelle Bowman said that inflationary pressures are still high and that she still does not support a rate cut at this point. Fed Board Member Bowman shared interest rate expectations in her speech at an event held in Washington. Stating that the Fed's current monetary policy is 'restrictive', Bowman said, "If incoming data show that inflation has fallen to the 2% target in a sustainable manner, it would be appropriate to start reducing interest rates in order to prevent monetary policy from being overly restrictive. However, we are still not at a point where we will consider reducing the policy rate at this time. Because there are still upward risks to inflation." The official also said that she would be willing to raise interest rates again if the slowdown in inflation stops. At the last meeting, Fed officials' expectation of 3 rate cuts for this year had dropped to 1 due to inflationary pressures. In a statement she made earlier this week, Bowman said that she did not foresee a rate cut this year and that there could be a cut next year.