Federal Reserve Governor Michelle Bowman reiteratedamericanroulettewheelShe expects inflation to remain high for some time, but still believes that with interest rates remaining at current levels, price pressures will eventually subside.
Bowman said in a prepared speech to the Pennsylvania Bankers Association on Friday: "The average core consumer price index growth rate this year to the end of April was 4.5 percent.americanroulettewheel.3%, which is much higher than the average inflation rate in the second half of last year, so I expect inflation to remain high for some time."
"My baseline expectation remains that inflation will fall further while policy rates remain stable, but I still believe my outlook faces some upside inflation risks," she said.
Her comments on inflation and policy were consistent with earlier this month.
Bowman described the policy as "restrictive" but noted that she would continue to monitor future data to assess whether it would be enough to bring inflation back to target levels.
She emphasized that there was no predetermined track for policy and reiterated that she was still willing to raise interest rates if inflation stalled or reversed.
Bowman said progress towards a better balance in the labor market has slowed.
"Strong consumer demand for services, increased immigration and continued labor market tensions risk maintaining high inflation rates in core services."
"There is also a risk that the easing of financial conditions since late last year and additional fiscal stimulus measures may also strengthen demand momentum, thus hindering further progress in inflation or even causing inflation to accelerate again."