Federal Reserve Governor Michelle Bowman said on Tuesday that the US may see inflation lasting longer than expected a few months ago.
Bowman did not comment on her outlook for monetary policy in remarks prepared for a virtual event hosted by the Richmond Fed.
However, she noted the obstacles making it difficult for many women to work, combined with an increase in retirements. She explained that this could hinder the labour market recovery and be a drag on the US economy.
''Women with young children left the labour force at a higher rate than other workers and some are still struggling to find childcare they can afford'', Bowman said.
''And many of the older workers who left the labour force during the pandemic, including a high share of women, may not return,'' Bowman added.
"The loss of these workers will limit the productive capacity of the economy, and may make it harder, or even impossible in the near term, to return to the high level of employment achieved before the pandemic," Bowman said in remarks prepared for the event.
Bowman did not comment on her outlook for monetary policy in the prepared remarks.
Market implications
Meanwhile, the US dollar has struggled against its rivals which have been recently boosted by expectations of sooner-than-previously expected interest rate hikes. Additionally, US yields have appeared to stabilize on which has likely reduced demand for the greenback.
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