• Investing
  • Stock
Round Table Thoughts
  • Economy
  • Editor’s Pick
Home Editor's Pick Federal Reserve official says more U.S. rate hikes likely will be needed to bring down inflation
Editor's Pick

Federal Reserve official says more U.S. rate hikes likely will be needed to bring down inflation

by August 9, 2023
by August 9, 2023 0 comment
Share
0
FacebookTwitterPinterestWhatsapp

The U.S. Federal Reserve will likely need to raise interest rates further to bring down inflation, Governor Michelle Bowman said on Saturday.

Bowman said she supported the Fed’s quarter-point increase in interest rates last month, given still-high inflation, strong consumer spending, a rebound in the housing market and a labor market that is helping to feed higher prices.

“I also expect that additional rate increases will likely be needed to get inflation on a path down to the FOMC’s 2 percent target,” she said in remarks prepared for delivery to the Kansas Bankers Association, referring to the Fed’s rate-setting panel, the Federal Open Market Committee.

Monetary policy is not on a “preset course,” she also said, and data will drive future decisions.

“We should remain willing to raise the federal funds rate at a future meeting if the incoming data indicate that progress on inflation has stalled.”

Bowman has frequently expressed views that are more hawkish than some of her colleagues.

In forecasts published in June, most Fed policymakers expected to end the year with the Fed policy rate at 5.6%, one quarter-point hike above the setting established at the Fed’s late-July meeting.

Bowman’s use of the plural “rate increases” in her remarks on Saturday indicates she thinks the Fed will need to go higher than that.

After the most recent rate hike, Fed Chair Jerome Powell left the door open to another increase in September, but also signaled that cooler data could allow a pause.

Bowman noted some progress on inflation, which by the widely followed consumer price index slowed to a 3% annual rate in June, down from 9% in the middle of last year.

“The recent lower inflation reading was positive, but I will be looking for consistent evidence that inflation is on a meaningful path down toward our 2 percent goal as I consider further rate increases and how long the federal funds rate will need to remain at a restrictive level,” she said.

“I will also be watching for signs of slowing in consumer spending and signs that labor market conditions are loosening.”

The Labor Department’s monthly job market report on Friday showed hiring slowed in June, but unemployment, at 3.5%, remains slow, and Bowman noted there are still many more available jobs than there are workers to fill those jobs.

Banks also continue to increase lending to households and businesses, albeit at a slower pace than when interest rates were lower, with no sharp contraction of credit since the banking turmoil in March, she said.

Reuters reporting by Ann Saphir; Reuters editing by Tom Hogue

This post appeared first on NBC NEWS
You Might Also Like
  • CVS Health to pull decongestants with phenylephrine off shelves
  • Home sales slipped unexpectedly in April despite big gains in supply
  • Musk to be subpoenaed for documents in Virgin Islands’ Epstein lawsuit against JPMorgan
  • See how the prices have changed for popular grocery items
Share
0
FacebookTwitterPinterestWhatsapp

previous post
The U.S. economy added 187,000 jobs in July, fewer than expected
next post
Market Breadth Indicators Signal Selling Phase

You may also like

‘Eat now, pay later’? DoorDash-Klarna deal fuels concerns around loans...

March 25, 2025

Walmart workers are getting raises

January 24, 2024

All Quiksilver, Billabong and Volcom stores to close in U.S.

February 7, 2025

Telenor IoT passes milestone of 20 million SIM cards

December 7, 2022

Quectel Continues to Drive Digital Transformation With Advanced Smart Module,...

January 6, 2023

JetBlue and Spirit Airlines terminate $3.8 billion merger

March 5, 2024

Cut from projects, dropped by agents: How the Israel-Hamas war...

December 3, 2023

Amazon workers must return to office full time, CEO says

September 17, 2024

Drone company’s stock soars after appointing Donald Trump Jr. to...

November 27, 2024

U.S. bans imports of certain Apple Watches that may infringe...

December 28, 2023

    Stay updated with the latest news, exclusive offers, and special promotions. Sign up now and be the first to know! As a member, you'll receive curated content, insider tips, and invitations to exclusive events. Don't miss out on being part of something special.


    By opting in you agree to receive emails from us and our affiliates. Your information is secure and your privacy is protected.

    Recent Posts

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout, pulls outlook

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025
    • The Unpredictable Stock Market: How to Make Sense of It

      May 8, 2025
    • AMD CEO calls China a ‘large opportunity’ and warns against strict U.S. chip controls

      May 7, 2025

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be...

      June 27, 2024 2,630 views
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as...

      August 9, 2024 2,339 views
    • 3

      Biden appointee played key role in recruiting Chinese...

      June 25, 2024 2,320 views
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful...

      July 10, 2024 2,302 views
    • 5

      Harris VP pick spent years promoting research facility...

      August 29, 2024 2,186 views

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Popular Posts

    • 1

      Trump-era China sanctions ended by Biden may be revived under new House GOP bill

      June 27, 2024
    • 2

      Walz’s honeymoon with China gets fresh scrutiny as Harris camp blasts ‘lying’ critics

      August 9, 2024
    • 3

      Biden appointee played key role in recruiting Chinese businesses to Delaware: ‘Longtime friends’

      June 25, 2024
    • 4

      Shein’s global ambitions leaves some cybersecurity experts fearful of Chinese spy threats

      July 10, 2024
    • 5

      Harris VP pick spent years promoting research facility that collaborated with ‘Chinese military company’

      August 29, 2024

    Latest News

    • Krispy Kreme stock plunges after doughnut chain pauses McDonald’s rollout,...

      May 8, 2025
    • Don’t Buy Robinhood Stock… Until You See This Chart Setup

      May 8, 2025
    • UnitedHealthcare sued by shareholders over reaction to CEO’s killing

      May 8, 2025

    Categories

    • Economy (7,009)
    • Editor's Pick (2,066)
    • Investing (538)
    • Stock (2,530)

    Disclaimer: RoundTableThoughts.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice. The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

    Copyright © 2024 RoundTableThoughts.com. All Rights Reserved.

    Round Table Thoughts
    • Investing
    • Stock
    Round Table Thoughts
    • Economy
    • Editor’s Pick

    Read alsox

    Job growth totals 253,000 in April,...

    May 8, 2023

    CFPB expands oversight of digital payments...

    November 22, 2024

    It’s Elon Musk’s turn for a...

    April 23, 2025
    Sign In

    Keep me signed in until I sign out

    Forgot your password?

    Password Recovery

    A new password will be emailed to you.

    Have received a new password? Login here