Fed's Bowman Urges Caution: Inflation Risks Persist, Rate Cuts Premature

Federal Reserve Governor Michelle Bowman cautioned against premature interest rate cuts, citing potential upside risks to inflation. She emphasized the need to maintain current rates due to economic uncertainties, particularly highlighting concerns about immigration policies’ impact on the labor market and rental prices. Bowman stressed that current conditions do not warrant a reduction in policy rates and expressed openness to further rate increases if inflation progress stalls or reverses.