Fed governor supports more rate hikes to fight inflation

ISTANBUL

US Federal Reserve Governor Michelle Bowman on Tuesday voiced support for more rate hikes to fight inflation.

"I continue to expect that we will need to increase the federal funds rate further to bring inflation down to our 2% target in a timely way," she said at the 2023 Ohio Bankers League held in Columbus, Ohio.

"Currently, the federal funds rate appears to be restrictive, and financial conditions have tightened since September. Some of this tightening has occurred through longer term bond yields, which can be volatile over time as conditions change," she added.

Bowman said Fed officials do not yet know the effects of tightened financial conditions on economic activity and inflation, while there is an "unusually" high level of uncertainty regarding the economy and ongoing geopolitical risks.

The Fed has made 11 rate hikes since March 2022, raising the federal funds rate between the 5.25% - 5.5% target range – the highest in 22 years.

The bank skipped an interest rate increase for the third time this year at the conclusion of its two-day meeting last week.

After soaring to 9.1% in June last year, its highest in more than 40 years, annual US consumer inflation dropped to 3% this June but climbed to 3.7% in September.

ISTANBUL

US Federal Reserve Governor Michelle Bowman on Tuesday voiced support for more rate hikes to fight inflation.

The Fed has made 11 rate hikes since March 2022, raising the federal funds rate between the 5.25% - 5.5% target range – the highest in 22 years.

The bank skipped an interest rate increase for the third time this year at the conclusion of its two-day meeting last week.

After soaring to 9.1% in June last year, its highest in more than 40 years, annual US consumer inflation dropped to 3% this June but climbed to 3.7% in September.