According to PANews, Federal Reserve Governor Michelle Bowman has highlighted inflation as the primary concern in the central bank's decision-making process. Bowman expressed a preference for a cautious and gradual approach to reducing interest rates, warning that a rapid decrease could potentially reignite inflationary pressures.
Bowman noted that the current inflation rate remains above the Federal Reserve's target of 2%, indicating that the risks of rising inflation are still significant. Her comments underscore the ongoing challenges faced by the Federal Reserve as it navigates the complexities of monetary policy in an environment where inflationary pressures persist. The emphasis on a measured approach to interest rate adjustments reflects the central bank's commitment to maintaining economic stability while addressing inflation concerns.