Fed's Bowman: Greater confidence in falling inflation needed before more cuts

Published On Feb 17, 2025, 10:27 AM

Federal Reserve Governor Michelle Bowman emphasized the need for greater confidence in the declining inflation trends before the Fed considers further interest rate cuts. She noted that the current benchmark interest rate is stable, allowing time to observe inflation data and the impact of new trade policies introduced by the Trump administration. Bowman anticipates inflation to slow, with a projected drop in the personal consumption expenditures price index expected soon, although she acknowledged that risks to inflation persist. Overall, she indicated that the Fed is likely to hold steady on rates in the near future as they assess economic indicators and policies.