Fed/Bowman: Caution Advised on Interest Rate Cuts

Forex - Federal Reserve Governor Michelle Bowman stated that the inflation risks to the economy continue to be real, indicating that caution is needed in new decisions regarding interest rate cuts by the central bank. Speaking at the Missouri Bankers Association Senior Management Conference, Bowman said, “Especially as the labor market remains close to full employment, I continue to see greater risks on the price stability side.” Considering this, she noted, “While inflation remains elevated, I would prefer to proceed cautiously and gradually in lowering the policy rate.”