News Digest:

The Federal Reserve would continue to raise interest rates to a point that is high enough to bring inflation back down to its target rate. Governor Michelle Bowman confirmed that fed rates would continue upwards till inflation is back down to 2%.

Bowman told a conference of the American Bankers Association that the Fed’s overnight lending rate, currently in the 4.5-4.75% range, needs to be held for some more time in order to restore price stability, a report said.

Takeaway:

Inflation rate is still hovering around the 5% annual rate and Bowman believes that a strong labor market alongside moderating inflation would make a soft landing possible for the American economy. Fed policymakers have also called for more rate hikes while pointing to the possibility of a more aggressive monetary policy stance in the wake of the huge job gains in January.

End Notes

Source: https://finance.yahoo.com/news/feds-bowman-says-more-interest-141212507.html