HomeFinance NewsFinanceFed Bombshell: Rate Hikes on Pause, But Don't Expect Cuts Anytime Soon

Fed Bombshell: Rate Hikes on Pause, But Don’t Expect Cuts Anytime Soon


Fed Governor Bowman adjusts rate stance, says hikes likely over but not ready to cut yet


Federal Reserve Governor Michelle Bowman stated that interest rate hikes are likely to end, although she’s not ready to discuss rate cuts just yet.

She believes that inflation risks still exist and that further rate hikes may be necessary if inflation trends reverse.

Bowman’s stance has shifted slightly as recent data shows progress against inflation, suggesting that holding short-term rates at current levels could be sufficient.

However, she emphasizes caution and the need to closely monitor economic developments.

The Fed is scheduled to meet again on January 30-31, with market expectations of an initial rate cut in March.

Financial markets anticipate a total of six rate cuts this year, totaling 1.5 percentage points.

The central bank remains focused on achieving its 2% inflation target while balancing economic growth and unemployment.

Policymakers will continue to assess incoming data and adjust their approach as needed.

  • Overall sentiment: neutral
  • Positive

    “Federal Reserve Governor Michelle Bowman said Monday interest rate hikes are likely over.”

    “Bowman noted the progress made against inflation and said it should continue with short-term rates at their current levels.”


    “One of the central bank’s staunchest advocates for tight monetary policy, Bowman said she’s not ready to start talking about rate cuts.”

    “In my view, we are not yet at that point. And important upside inflation risks remain,” she said.”

latest articles

explore more