The Federal Reserve's governor Michelle Bowman noted on Monday that the Fed had made progress in lowering inflation over the past year, but it is still significantly above the 2% target, and the labour market continues to be tight. So, she added, she expects that additional rate increases will likely be needed to return inflation to the Fed's goal.
However, Bowman stressed that she will be closely monitoring the incoming data and their implications for the economic outlook. Specifically, she will be looking for evidence that inflation is on a consistent and meaningful downward path as she considers whether further rate hikes will be needed and how long the rates will need to remain at a sufficiently restrictive level.