Federal Reserve Governor Michelle Bowman believes the recent interest rate cuts are sufficient and sees no need for further reductions. In a speech to bankers, she expressed concerns about inflation being above the Fed’s 2% goal and stated that the December rate cut should be the last for the current cycle. Bowman views the current policy rate as “neutral” and does not expect it to hinder growth. Despite progress, she highlighted inflation risks, with core inflation above the target. Other Federal Reserve members have differing views, with Governor Christopher Waller suggesting more rate reductions may be warranted. Regional Presidents Susan Collins and Patrick Harker also have confidence in lowering rates this year. Bowman, a permanent voter on the FOMC, cautioned against preemptively judging the incoming administration’s policies on tariffs and immigration. She emphasized a cautious and gradual approach to adjusting policy to avoid negative impacts on economic activity and inflation.
