Angus Mordant / Bloomberg via Getty Images fileThe U.S. Federal Reserve will likely need to raise interest rates further to bring down inflation, Governor Michelle Bowman said on Saturday.
“I also expect that additional rate increases will likely be needed to get inflation on a path down to the FOMC’s 2 percent target,” she said in remarks prepared for delivery to the Kansas Bankers Association, referring to the Fed’s rate-setting panel, the Federal Open Market Committee.“We should remain willing to raise the federal funds rate at a future meeting if the incoming data indicate that progress on inflation has stalled.
Bowman noted some progress on inflation, which by the widely followed consumer price index slowed to a 3% annual rate in June, down from 9% in the middle of last year.