Fed Governor Michelle Bowman Urges For Rate Hikes Until Inflation Falls In 'Meaningful And Lasting Way'

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Federal Reserve Governor Michelle Bowman said on Saturday that the Fed should consider more 75 basis-point interest rate hikes in the coming days. 

According to Bowman, this will help in easing the inflation rate. Additional similarly sized interest rate increases should be on the table until there is a consistent decline in the inflation rate, she noted.

“My view is that similarly sized increases should be on the table until we see inflation declining in a consistent, meaningful, and lasting way,” Bowman said.

At a recent event organized by the Kansas Bankers Association, Bowman said that she strongly supported July month’s rate increase and backed the move away from offering specific forward guidance.

Also Read: US Economy Adds 372,000 Jobs In June, Another 0.75% Fed Rate Hike ‘Almost A Certainty’

Last week, Fed Chair Jerome Powell hinted that the central bank might consider another rate hike at the Sept. 20-21 meeting. 

The Fed is already under pressure to deliver another 75 basis-point interest rate hike at its upcoming September meeting. 

Inflation is raging at its highest level in more than 40 years, and the Commerce Department reported the economy has contracted for two quarters in a row. 

According to the Labor Department data released on Friday, the U.S. economy has added about 528,000 jobs, and the unemployment rate has fallen to 3.5%. 

In an attempt to ease the inflation rate, Fed policymakers have increased rates by 75 basis points in both June and July.

Photo: Courtesy of commons.wikimedia.org and Rafael Saldaña on flickr

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Image and article originally from www.benzinga.com. Read the original article here.