Fed Governor Bowman says December interest rate cut should be the last for now

Federal Reserve Governor Michelle Bowman stated that the recent interest rate cut in December should be the last for now. She expressed concerns about inflation remaining above the Fed's 2% target, indicating a cautious approach moving forward. Bowman noted that while inflation decreased significantly in 2023, core inflation is still too high. Other Fed members have differing views, with some expressing optimism about future rate cuts this year. Bowman, a permanent voter on the Federal Open Market Committee, emphasized the need for a careful approach to policy adjustments. She highlighted strong stock market performance and rising Treasury yields as signs that current rates are effectively managing economic activity.