Fed's Bowman Discusses Interest Rate Changes
According to Al-Adili, Fed member Bowman stated that it is not yet appropriate to cut interest rates. He suggested that if inflation is heading toward 2%, a rate cut may be considered. However, if inflation does not slow, he is still willing to raise interest rates again.
Bowman stressed the need to be cautious when considering future changes to the Fed's interest rates. He noted that current monetary policy is restrictive and that there is still a risk of higher inflation. He also expected inflation to decline only moderately this year.