More 75 basis-point hikes should be on the table: Fed’s Bowman

Michelle Bowman, governor of the U.S. Federal Reserve nominee for U.S. President Donald Trump, speaks during a Senate Banking Committee confirmation hearing in Washington, D.C., U.S., on Tuesday, May 15, 2018. Bowman, a Kansas state bank commissioner, has been nominated to fill a seat at the Fed Board in Washington reserved for a person with community bank experience. Photographer: Andrew Harrer/Bloomberg

The US Federal Reserve should consider more 75 basis-point interest rate hikes at coming meetings in order to bring high inflation back down to the central bank’s goal, Federal Reserve Governor Michelle Bowman said on Saturday.

“I supported the FOMC’s decision last week to raise the federal funds rate another 75 basis points,” Bowman said in prepared remarks to a Kansas Bankers Association event in Colorado, referring to the Federal Open Market Committee that sets monetary policy. “My view is that similarly-sized increases should be on the table until we see inflation declining in a consistent, meaningful, and lasting way.”

A procession of policymakers this week have shown stiffening resolve to continue the aggressive monetary tightening, with nearly all of them making plain the central bank remains determined to press ahead with rate hikes until it sees strong and long-lasting evidence that inflation is on track to back down to the Fed’s 2% target.

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