Fed's Bowman (voter) says persistent inflation and firming labour conditions suggest 'still work to do'
ORIGINAL · NewsquawkFed's Bowman (voter) says persistent inflation and firming labour conditions suggest 'still work to do'Read originalHide original
Financial conditions have tightened and the Fed must weigh the costs of additional policy tightening. Bringing inflation down remains a priority. Core PCE likely rose 3.3% in October on energy prices and AI-related demand. As shocks unwind, forecasts core PCE to move closer to 2% next year. Economic growth gained momentum this year. CPI data suggests inflation pressures may persist. Labour market has improved; not tight and not adding to inflation. Sees risk of large correction to equity valuations.
Bowman cited persistent inflation signals, expected core PCE of 3.3% in October, and a need to weigh further tightening costs; she also described growth, labor conditions and valuation risks.
News detail
Financial conditions have tightened and the Fed must weigh the costs of additional policy tightening. Bringing inflation down remains a priority. Core PCE likely rose 3.3% in October on energy prices and AI-related demand. As shocks unwind, forecasts core PCE to move closer to 2% next year. Economic growth gained momentum this year. CPI data suggests inflation pressures may persist. Labour market has improved; not tight and not adding to inflation. Sees risk of large correction to equity valuations.
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