Fed's Bowman: Sizable rate hikes should remain on table if inflation not seen moving down

Federal Reserve Board Governor Michelle Bowman speaks on "Forward Guidance as a Monetary Policy Tool: Considerations for the Current Economic Environment" before the Money Marketeers of New York University, in New York.

Headlines via Reuters:

• 'sizable' rate hikes should remain on table if do not see signs inflation Inflation Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Inflation is defined as a quantitative measure of the rate in which the average price level of goods and services in an economy or country increases over a period of time. It is the rise in the general level of prices where a given currency effectively buys less than it did in prior periods.In terms of assessing the strength or currencies, and by extension foreign exchange, inflation or measures of it are extremely influential. Inflation stems from the overall creation of money. This money is m Read this Term is moving down
• Fully supported Fed's 75-bps rate hikes
• If inflation starts to decline, slower pace of rate increases would be appropriate
• 'not yet clear' how high rate will need to go
• Inflation much too high, must bring it down
• Fed funds rate will need to rise to restrictive level, remain there 'for some time'
• Not yet clear how much time before inflation moves down in 'consistent,' 'lasting' way
• Significant uncertainty on inflation outlook makes it challenging to provide precise guidance on path of rates
• Outlook for inflation, economic activity has 'significant two-sided risks'
• High uncertainty puts a premium on flexibility
• Should limit explicit forward guidance to when rates are near zero and inflation subdued
• Benefits of explicit forward guidance lower, risks are higher now than in years following the 2008 crisis
• Should communicate unwavering resolve to restore price stability, decide policy meeting-by-meeting, stay attentive to risks

Nothing much to set Bowman apart from most of her Federal Open Market Committee (FOMC) colleagues here. Bowman is acknowledging data-dependence to guide the rate-hike path ahead.

Earlier posts:

• TD forecasts +75bp Fed rate hike in November, +50 in December. Terminal 5% by March 2023

• JP Morgan forecast Fed's upper band of target range to 4.75%, and stay there through 2023

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