Federal Reserve officials in separate speeches discussed the implications of softening economic activity on the interest rate outlook.
Fed Governor Michelle Bowman said she continues to expect that the Fed will need to further increase the federal funds rate to bring inflation down to the agency’s 2% target, though she will continue to watch incoming data.
Fed Governor Christopher Waller said that while inflation is still too high and questions remain about whether slowing economic activity will continue, he is increasingly confident that policy is well positioned to bring inflation down to 2%.
Background: The Federal Open Market Committee earlier this month voted to hold target interest rates at a 22-year high for a second consecutive meeting and has held off on rate hikes in three of its past four meetings.
