Federal Reserve Governor Bowman: It is too early to judge the impact of the war on inflation and temporary price shocks can be ignored for now
BlockBeats news, on May 29, Federal Reserve Governor Bowman stated that it is still too early to assess the impact of the Iran war on inflation, and that policymakers need to take a "temporary disregard" attitude toward short-term price shocks. Bowman said she supports the decision made by officials last month to keep language in the post-meeting statement that suggests further interest rate cuts are still possible.
This stance sets her apart from a growing number of policymakers, as others want the Federal Reserve to signal that the next move could be either an interest rate hike or a rate cut. "When considering the future course of monetary policy, I hope to have a clearer understanding of the economic impact and persistence of the Middle East conflict," Bowman said. "As long as we maintain credibility in our commitment to the inflation target, it is appropriate to temporarily disregard the upward movement in inflation data that is mainly caused by rising energy prices." (Golden Ten Data)
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