While inflation has fallen over the last year, it remains above the Fed’s 2 percent target. The labor market also “continues to be tight,” Bowman said, noting job openings exceed the number of available workers.
“Economic activity has grown at a moderate pace, and even as banks have been tightening their lending standards in response to higher interest rates and funding costs, lending to businesses and households has continued to expand,” Bowman said at a “Fed Listens” event in Atlanta.
“Given these developments, I supported raising the federal funds rate at our July meeting, and I expect that additional increases will likely be needed to lower inflation to the [Federal Open Market Committee’s] goal,” she added.
The Fed hiked its baseline interest rate by 0.25 percent to a range of 5.25 to 5.5 percent, the central bank’s 11th time raising rates since March 2022.
As she weighs whether additional interest rate increases are necessary, Bowman said she will be “looking for evidence that inflation is on a consistent and meaningful downward path.”
The Fed will determine whether additional rate hikes are needed at its September meeting.
The Hill’s Lauren Sforza has more here.
