Federal Reserve (Fed) Board of Governors member Michelle Bowman added her voice to a chorus of Fed speakers this week as policymakers work double-duty to try and smooth over market reactions to a much tighter pace of rate cuts in 2025 than many market participants had previously anticipated.
The current stance of policy may not be as restrictive as others may see it.
We should refrain from prejudging incoming administration's future policies.
I prefer a cautious and gradual approach to adjusting policy.
Inflation is elevated and I see upside risks; progress has stalled.
Inflation concerns may partly explain the rise in the 10-year Treasury yield.
Pent-up demand following election could pose inflationary risks.
I see greater risks to price stability, though deterioration in labor market conditions possible.
The coming months should bring clarity on incoming administration's policies, inflationary pressures.
Bank regulators should adopt a more pragmatic approach to policymaking.
The December interest rate cut should be the last.
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