From CNBC: 2025-02-17 12:07:46

Federal Reserve Governor Michelle Bowman expressed caution on further interest rate cuts, citing the need for more progress on inflation. She highlighted rising core goods price inflation as a concern, despite expectations for inflation to decelerate this year. The recent consumer price index showed higher-than-expected inflation, reinforcing the Fed’s decision to maintain its target rate at 4.25% to 4.5%. The current policy stance allows the Fed to monitor inflation data and assess economic indicators amidst uncertainty surrounding Trump’s tariffs and their impact on the economy. Traders are less optimistic about further rate cuts in 2025 due to trade war concerns.

Read more: More progress on inflation needed before more rate cuts