The Federal Reserve will likely have to keep raising interest rates to rein in price growth, which could slow economic expansion and affect the jobs market, Governor Michelle Bowman said. “We are still far from achieving price stability, and I expect that it will be necessary to further tighten monetary policy to bring inflation down toward our goal,” Bowman said Monday at a community banking conference in Orlando, Florida. “Doing so will likely lead to subdued growth in economic activity and some softening in labor-market conditions.” She said restoring price stability is essential to support a sustainably strong labor market. … Fed officials lifted their benchmark interest rate by a quarter percentage point to a range of 4.5% to 4.75% on Feb. 1. The smaller move followed a half-point increase in December and four 75 basis-point hikes prior to that. Officials in December forecast rates peaking at 5.1% this year, according to their median projection. They will update those estimates next month.
Source: The Bond Buyer
