Fed Chair Michelle Bowman foresees further interest rate increases.
Federal Reserve Governor Michelle Bowman recently said that the institution will keep raising interest rates to get inflation back to its 2% target rate in a speech at the American Bankers Association convention in Florida.
Putting supply and demand in balance
The Federal Reserve must balance supply and demand in order to reach its 2% inflation goal, according to Bowman. The only way to do this is to keep raising the federal funds rate.
Bringing Price Stability Back
Bowman claimed that in order to restore price stability, interest rates must be maintained for a specific period of time once they have reached a level that is appropriately restrained. She did not, however, go into detail about the intended rate peak.
Other Fed Policymakers Reiterate Attitude
Several other Federal Reserve officials concurred with Bowman last week, stating that more rate increases are required. None of them, however, suggested that the recent enormous employment increases recorded for January would prompt them to take a more aggressive position on monetary policy.