Fed's Bowman: Inflation risks remain, rate cuts expected but data-dependent ...Middle East

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Feds Bowman: Inflation risks remain, rate cuts expected but data-dependent
Inflation still elevated with upside riskStill expect inflation to moderate but need data to confirm that before more rate cutsRate cuts still expected this year but future moves should be cautious and gradual with time to assess dataCurrent policy in a good place for Fed to monitor data, be clear on economic impact of Trump administration policies before moving rates againFragility of supply chains, geopolitical tensions, release of pent-up demand post election, other factors could also feed inflationFirst quarter data important to how quickly inflation will improve going forwardLabor market not especially tight but wage growth still inconsistent with 2% inflation targetWatching long-term Treasury yields as possible sign markets are expecting tighter policy will be needed to control inflationNot clear monetary policy is exerting much pressure on economy, with easy financial conditions and high asset prices possibly slowing progress on inflation

Bowman is the hawk at the Fed and these comments aren't exactly staking out a truly hawkish position.

This article was written by Adam Button at www.forexlive.com.

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