Fed’s Bowman sees upside inflation risk, signals caution on cuts

Governor of the Federal Reserve Michelle Bowman she said she still sees Upside risks to inflation and continued strength in the labor market, indicating that it may not be ready to support an interest rate cut when U.S. central bankers next meet in September.

“The progress made in reducing inflation in May and June is a positive development, but inflation still remains dangerously above the committee’s 2 percent target,” Bowman said Saturday in a speech to the Kansas Bankers Association in Colorado Springs, referring to the Fed’s rate-setting committee. “I will remain cautious in my approach to adjusting the current monetary policy stance.”