In a speech overnight, Fed Governor Michelle Bowman asserted, “I continue to expect that we will need to increase the federal funds rate further to bring inflation down to our 2% target in a timely way.”
She acknowledged that interest rates “appears to be restrictive” while financial conditions “have tightened since September”. However, “We don’t yet know the effects of tightened financial conditions on economic activity and inflation, she cautioned.
“There is an unusually high level of uncertainty regarding the economy and my own economic outlook, especially considering recent surprises in the data, data revisions, and ongoing geopolitical risks,” she noted.
