Two Fed Members Spoke Simultaneously: What’s the Direction of the Rate Decision for the Next Meeting?
FED members Michelle W. Bowman and Lorie K. Logan recently talked about US economic policies, explaining their views on the current state of the economy and future steps.
Bowman stated that he supports the FED’s decision to keep interest rates steady in November and continues to expect further interest rate hikes if necessary. Bowman stated that there has been some tightening with the rise in bond yields and that he is ready to support interest rate hikes if the improvement in inflation stalls.
He said that financial conditions have tightened since September and it is unclear how this tightening will affect the economy and inflation. Bowman emphasized that he would monitor incoming data closely and that monetary policy was not on a predetermined route. He also added that the Fed interest rate looks restrictive right now.
On the other hand, Logan expressed surprise at the resilience of the US economy. He stated that there was some cooling in the labor market and wage growth. Despite earlier expectations of slowing growth, he admitted they were wrong.
Logan reminded that the latest data on inflation is better, but the latest data is high. He argued that inflation figures showed a trend towards 3%, not 2%.
The next Federal Open Market Committee (FOMC) meeting will be held on December 12-13, 2023.
*This is not investment advice.