From CNBC:

Federal Reserve Governor Michelle Bowman gave her first public remarks at an American Bankers Association conference, saying her strict stance on monetary policy has softened slightly. She mentioned that interest rate hikes are likely over for now, but she’s not ready to start cutting them. Her latest remarks come ahead of the Fed’s next meeting in January and market expectations for rate cuts to begin in March.

Bowman remains cautious in her approach, noting that while she sees progress against inflation, she’s wary of the possibility of inflation falling further. The Fed’s closely watched dot-plot matrix has indicated up to three potential rate cuts this year, though there’s uncertainty about when these reductions might occur. The committee will continue to monitor developments, and the markets are expecting the Fed to hold rates steady at the upcoming meeting at the end of January.

Bowman’s softened stance on interest rates comes in the wake of a shift in expectations for Fed policy, with market pricing indicating the potential for multiple rate cuts in 2024. The Fed’s latest meeting in December saw the benchmark federal funds rate being held steady, but there is growing speculation about when rate cuts might occur. As the Fed prepares for its next meeting at the end of January, policymakers are attuned to the potential for changes in their policy stance given the evolving inflation data.



Read more: Fed Governor Bowman adjusts rate stance, says hikes likely over but not ready to cut