Michelle Bowman
- Still willing to hike at future meeting should data show progress on inflation stalled or reversed
- Still sees a number of upside risks to her outlook
- Monetary policy stance appears to be restrictive
- Unclear whether further supply-side improvements will continue to lower inflation
- Risk strong that consumer demand, more immigration and tight labor market could lead to persistently high core services inflation
- Fiscal stimulus could juice demand
- Extent of data revisions in past few years makes assessing economy even more challenging
- Says she will remain cautious in her approach to deciding future chances to policy stance
- Recent inflation pickup evident across many goods and services categories
This is the typical hawkish rhetoric from Bowman and was released in a statement as part of an appearance at the Massachusetts Bankers Association.
Here's the final paragraph:
It is important to note that monetary policy is not on a preset course. My colleagues and I will make our decisions at each FOMC meeting based on the incoming data and the implications for and risks to the outlook. While the current stance of monetary policy appears to be at a restrictive level, I remain willing to raise the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed. Restoring price stability is essential for achieving maximum employment over the longer run.
