According to Federal Reserve (Fed) Board of Governors member Michelle Bowman, slower-than-expected progress on inflation has left the Fed policymaker cautious about monetary policy stance.
Key highlights
Latest inflation data suggests slower progress on inflation.
Fed's Bowman expects inflation will decline further with current policy rates.
Upside risks to inflation still remain.
Fed's monetary policy stance is still appropriately restrictive.
Economic activity, consumer spending remain strong, labor market is still tight.
If inflation moves sustainably to 2% goal, it will eventually be appropriate to cut rates, but not there yet.
Fed's Bowman remains willing to raise policy rates if progress on inflation stalls or reverses.
Remains cautious on monetary policy.
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