Federal Reserve Governor Bowman: It's Still Too Early to Assess War's Impact on Inflation, Price Shocks Can Be Temporarily Overlooked

BlockBeats News, May 29th— Federal Reserve Governor Bowman stated that it is currently too early to assess the impact of the Iran war on inflation. Policymakers need to take a "transitory mindset" toward temporary price shocks. Bowman expressed her support for officials' decision last month to keep the option of further rate cuts open, as indicated in the post-meeting statement.

This stance sets her apart from an increasing number of policymakers who are hoping the Fed will signal that the next move could either be a rate hike or a rate cut. "In thinking about the future path of monetary policy, I would like to have a clearer understanding of the economic implications of the Middle East conflict and its sustainability," Bowman said. "As long as our commitment to achieving the inflation goal remains credible, taking a 'transitory mindset' toward the transitory inflation data driven primarily by the rise in energy prices is appropriate." (FXStreet)