REMEMBER WHEN BIDENFLATION WAS A TRANSITORY PROBLEM? Fed Governor Bowman says she’s still open to raising rates if inflation doesn’t improve.
Recent readings have shown moderating inflation, with the Fed’s preferred indicator running just under 3%. However, the rate-setting Federal Open Market Committee noted after its last meeting that there has been only “modest further progress.”
Bowman noted that there are “a number of upside risks” prevailing that could accelerate her outlook, which is among the most hawkish of all policymakers.
“I remain willing to raise the target range for the federal funds rate at a future meeting should progress on inflation stall or even reverse,” she said. “Given the risks and uncertainties regarding my economic outlook, I will remain cautious in my approach to considering future changes in the stance of policy.”
The Commerce Department on Friday will release its reading on the May personal consumption expenditures price index, the Fed’s preferred inflation gauge. Economists surveyed by Dow Jones expect a 12-month inflation rate of 2.6% on both the all-items and core, which excludes food and energy prices.
Does anyone outside Washington still trust Washington’s numbers?