Federal Reserve Governor Michelle Bowman cautioned Friday against potentially raising interest rates in response to the recent spike in inflation, arguing that temporary increases in energy prices should not prompt policymakers to tighten monetary policy further.
Bowman made the remarks during a conference in Reykjavík, Iceland, as financial markets continue monitoring inflation pressures tied to rising global energy costs and the war in Iran. The conflict has fueled concerns across global markets over oil supply disruptions and broader economic instability, adding renewed pressure on central banks already grappling with elevated inflation following years of post-pandemic price increases and geopolitical disruptions linked to the Russia-Ukraine war.
