The governor of the Federal Reserve Bank, Michelle Bowman, emitted her first public comments as a federal politician at a conference of the American Bankers Association in San Diego, California, on February 11, 2019.
Ann Sapphire | Reuters
The governor of the Federal Reserve, Michelle Bowman, said on Monday that monetary policy is “now in a good place”, she wants data to reflect more progress in inflation before the interest rates further lowers.
“I would like to gain greater confidence that the progress in reducing inflation will continue when we consider to make further adjustments to the target group,” said Bowman in a speech at the American Bankers Association.
Increasing core price -Inflation since last spring has slowed progress, said Bowman. While she expects inflation to continue to be requested this year, she said that disinflation could “take longer than we would hope.”
“I continue to see greater risks to price stability, especially if the labor market is still strong,” said Bowman.
The most recent consumer price index showed an inflation that was higher than expected in January and rose by 0.5% per month compared to Dow Jones's estimation by 0.3%. This was 3%of the annual inflation rate and was above the consensus forecast for 2.9%for 2.9%
The FED kept its target rate of 4.25% to 4.5% at its meeting in January.
On Monday, Bowman said that the current level “enables” to be patient and to enable the inflation data while it develops “.
“The current political attitude also offers the opportunity to check further indicators for economic activity and to further clarify the policy of the administration and its effects on the economy,” continued Bowman.
President Donald Trump's tariffs against the largest trading partners in the United States have expressed higher prizes in economists. The expectations of further interest rate cuts in 2025 weakened Trump's trade war. According to data from the CME groups, dealers are currently only a reduction in the quarter percentage points this year.