Fed's Bowman: Additional rate hikes needed to control inflation

Eren Sengezer FXStreet

"Additional policy rate increases" will be to reach a sufficiently restrictive level and control inflation, Federal Reserve (Fed) Governor Michelle Bowman said on Thursday, per Reuters.

Bowman noted that inflation is still unacceptably high, despite the recent drop seen in headline numbers.

"Although tighter monetary policy has had some effect on economic activity and inflation to date, we have seen core inflation essentially plateau since the fall of 2022," she added.

Market reaction

The US Dollar Index clings to small daily gains near 102.20 following these comments.

Author

Eren Sengezer

FXStreet

As an economist at heart, Eren Sengezer specializes in the assessment of the short-term and long-term impacts of macroeconomic data, central bank policies and political developments on financial assets.

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