In his latest speech, Bauman did not mention more data released this week, particularly the US CPI for April. Compared to a week ago, the latest data showed that the US CPI data for April gave a signal of cooling down, but she didn't seem to be moved by it.
On Friday, Federal Reserve Governor Bowman, who has the right to vote in the Federal Reserve's FOMC, once again released an eagle. In line with the main tone of a week ago, she reiterated that she is willing to support the Federal Reserve's FOMC to raise interest rates when needed if progress in cooling US inflation stagnates or reverses.
Bauman said she will remain cautious when considering future changes in policy positions:
The US made significant progress in reducing inflation last year, but we have yet to see further progress this year. Although the current monetary policy stance seems to be at a restrictive level, I am still willing to raise the target range of the federal funds rate at future meetings if the data released in the future shows that the progress of US inflation has stagnated or been reversed.
In his latest speech, Bauman did not mention more data released this week, particularly the US CPI for April. Compared to a week ago, the latest data showed that the US CPI data for April gave a signal of cooling down, but she didn't seem to be moved by it.
However, Bowman expects that as the Federal Reserve's policy interest rate remains high, inflation will cool down further. She also mentioned that the process of rebalancing the US labor market has slowed down.
On Friday, Bauman spoke loudly. She said bluntly that it was inappropriate for the Federal Reserve to cut interest rates in 2024, and pointed out that US inflation continued to be under pressure in the first few months of this year. She urged the Fed's policymakers to be careful and thorough as they move towards the 2% inflation target.
Federal Reserve Governor Bowman reiterated his openness to interest rate hike options, and two-year US Treasury yields hit a new high. The US 10-year Treasury yield rose 3.51 basis points and remained at a daily high of 4.41%. The two-year US Treasury yield rose by about 2.0 basis points, reaching a new high of 4.8160%.