U.S. Federal Reserve Governor John Bowman said the Fed will likely need to continue raising interest rates to curb inflation. He said continued rate hikes could slow the pace of economic expansion and affect the labor market.
Bowman speaks at a regional bank conference in Orlando, Fla., Thursday. “We are still far from achieving price stability, and we expect monetary policy to need to tighten further to slow inflation towards the authorities’ target,” he said. “Such tightening measures are likely to constrain economic activity and soften labor market conditions somewhat,” he said.
Bowman said a return to price stability is essential to support a sustainably strong labor market. “There are costs and risks associated with tightening monetary policy to slow inflation, but I believe the costs and risks of letting persistent inflation outweigh the risks,” he said.
news-rsf-original-reference paywall">Original title:Fed’s Bowman Expects More Rate Hikes to Reach Inflation Goal(excerpt)