Fed Governor Bowman says more progress on inflation is needed before further rate cuts

Published On Feb 17, 2025, 12:07 PM

Federal Reserve Governor Michelle Bowman stated that before any further interest rate cuts can be considered, there needs to be clear progress indicated by data on inflation. She acknowledges the expectation that inflation will decrease over the year, but warns that this disinflation process may take longer than anticipated. Current inflation trends show a rise, potentially complicating the path towards rate cuts. The Fed remains patient to review economic indicators more closely before making any adjustments to rates, which currently sit between 4.25% and 4.5%.