Fed Governor Bowman: Large interest-rate rises could continue
In an appearance before the Kansas Bankers Association, on Saturday, US Federal Reserve (Fed) Governor Michelle Bowman said that she strongly supports super-sized rate increases to fight inflation, per Wall Street Journal (WSJ).
Key quotes
“Strongly supported the Fed’s 0.75-percentage-point rate increase last month” and “similarly-sized increases should be on the table until we see inflation declining in a consistent, meaningful and lasting way.”
“Expect the labor market to remain strong,” adding that the “current outlook sees economic growth picking up during the second half of the year.”
“Our primary challenge is to get inflation under control.”
The recent inflation figure is “concerningly high.”
“Few, if any, concrete indications” that support the expected inflation has peaked.
“I will need to see unambiguous evidence of this decline before I incorporate an easing of inflation pressures into my outlook.”
Market reaction
At the time of writing, the US dollar index is off the weekly highs, consolidating around 106.60 before the next push higher.
Author
Dhwani Mehta
FXStreet
Residing in Mumbai (India), Dhwani is a Senior Analyst and Manager of the Asian session at FXStreet. She has over 10 years of experience in analyzing and covering the global financial markets, with specialization in Forex and commodities markets.
