Noting there are a number of potential upside risks to inflation, Bowman said policymakers need to be careful not to ease monetary policy too quickly.
“Although these are not my baseline expectations, I still see the risk that at a future meeting we may need to raise interest rates further if the decline in inflation stalls or even reverses,” she said in remarks prepared for a speech to a group of experts.
Cutting rates too early or too quickly could trigger an inflation rebound, requiring further interest rate increases in the future to bring inflation back to 2 percent in the long run, she added.
As a member of the US Federal Reserve's Board of Governors, Bowman has a vote on the Federal Open Market Committee, which sets interest rates.
Since taking office in late 2018, her public speeches have placed her on the more hawkish side of the FOMC, meaning she favors a more aggressive stance toward containing inflation.
Bowman said that her expectations are mostly towards eventually lowering interest rates in due course, although she noted that the Fed has not yet reached the point of cutting rates, explaining that she still sees a number of upside risks to inflation.
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