by Lallalit Srijandorn
FX Street
Federal Reserve Governor Michelle Bowman said on Sunday that she still sees upside risks for inflation and continued strength in the labor market, highlighting the Fed may not be ready to cut rates when US central bankers next meet in September, per Bloomberg.
Key quotes
“The progress in lowering inflation during May and June is a welcome development, but inflation is still uncomfortably above the committee’s 2% goal.”
“I will remain cautious in my approach to considering adjustments to the current stance of policy.”
“Should the incoming data continue to show that inflation is moving sustainably toward our 2% goal, it will become appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive on economic activity and employment.”