Fed Governor Bowman says December interest rate cut should be the last

Published On Jan 9, 2025, 1:35 PM

Federal Reserve Governor Michelle Bowman has stated that the recent interest rate cuts, particularly the one in December, should be considered the last in the current cycle. Although she supports these cuts, her focus remains on concerns about inflation, which is still above the Fed's target. Bowman's hawkish stance suggests that she is cautious about loosening monetary policy further, especially in light of inflationary pressures. Other Fed officials exhibit a more optimistic view, indicating potential further rate cuts in the future. This divergence in perspectives reflects ongoing debates within the Fed regarding economic conditions and inflation forecasts.