A member of the US Federal Reserve’s board of governors warned Friday that the central bank may be forced to raise interest rates again if falling inflation does not accelerate in the coming weeks. Speaking at a conference in Frankfurt, Germany, Fed Governor Michelle Bowman said that if inflation remains high and the labor market remains tight, tighter monetary policy measures may be necessary. These statements are based on the Fed’s goal of keeping inflation at around 2%.
Since March 2022, the Fed has raised interest rates ten times in order to curb inflation, which has been above the 2% target. Currently, the Fed’s main interest rate is in a range between 5.00% and 5.25%, reaching its highest level since 2006. The decision on future monetary policy adjustments will depend on available economic data.
In the same vein, the president of the New York Fed, John Williams, left open the possibility of further rate hikes to control inflation in the United States. Although a decrease in inflation has been observed in March compared to February, Williams stated that the option of raising rates in the future has not been ruled out and that it will depend on the available economic data. According to market sources compiled by CME Group, there is a 90% estimate that the Fed will hold interest rates at the June 14 meeting. This indicates that no immediate changes are expected, but future decisions will be subject to the evolution of economic and inflation indicators.