Central Banks
Fed Needs More Hikes If Inflation, Labor Stay Hot, Bowman Says
- Governor wants more consistent evidence inflation is easing
- She recommends independent review of SVB, Signature failures
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The Federal Reserve will likely need to raise interest rates further and hold them higher for some time if US price pressures don’t cool off and the jobs market shows no sign of slowing, Governor Michelle Bowman said.
“Should inflation remain high and the labor market remain tight, additional monetary policy tightening will likely be appropriate to attain a sufficiently restrictive stance of monetary policy,” Bowman said in remarks for delivery on Friday. “I also expect that our policy rate will need to remain sufficiently restrictive for some time to bring inflation down and create conditions that will support a sustainably strong labor market.”