The Federal Reserve is likely to have to keep raising interest rates to a “sufficiently restrictive level” to bring down inflation, Federal Reserve Governor Michelle Bowman said Monday.
“I expect that ongoing increases will be appropriate to bring the federal funds rate to a sufficiently restrictive level and that it will need to remain there for some time to restore price stability,” Bowman said in a speech at a community banking conference in Florida.
Bowman is the latest Fed official to indicate that the Fed still has multiple rate hikes ahead before it pauses to see how the hikes have affected the U.S. economy. Fed officials, along with many economists, believe monetary policy influences the economy with “long and variable” lags.
“We are still far from achieving price stability, and I expect that it will be necessary to further tighten monetary policy to…
