Fed Governor Michelle Bowman: Progress crucial on inflation before new rate cuts

Feb. 17 (UPI) -- A Federal Reserve governor says she wants to see more data on inflation before advocating additional interest rate cuts.

"I would like to gain greater confidence that progress in lowering inflation will continue as we consider making further adjustments to the target range," Michelle Bowman said Monday in a speech at an American Bankers Association conference in Phoenix.

Bowman said that core goods price inflation since last spring had slowed progress, and that while she expects inflation to keep decelerating this year, disinflation "may take longer than we would hope."

"I continue to see greater risks to price stability, especially while the labor market remains strong," Bowman said during her remarks.

The Fed had decreased the rate three time since September 2024, and kept its target rate at a range of 4.25% to 4.5% during its policy meeting at the end of January.

However, interest rates went unchanged in January, ending a trend of dropping cuts and bucking President Donald Trump's wishes amid uncertain economic times.

In remarks at the end of January to the New England CEO Summit in Portsmouth, N.H., Bowman said she wanted to see more progress toward lowering inflation to 2% before approving any more interest rate cuts.

On Monday, she said the current rate level was appropriate for "allowing the committee to be patient and pay closer attention to the inflation data as it evolves."

Wall Street observers says the next Federal Reserve meeting in March probably won't produce lower rates, as economists warn of higher prices amid the Trump administration's tariff's on U.S. allies and trading partners.

"The current policy stance also provides the opportunity to review further indicators of economic activity and get further clarity on the administration's policies and their effects on the economy," Bowman said Monday.