US FRB will need to cut interest rates if inflation continues to decline = Director Bowman

2024/8/12 12:19 PM GMT+9 (some excerpts)

Director Bowman of the US Federal Reserve (FRB) pointed out on the 10th that the inflation rate was “uncomfortably” above the target of 2%, and even though there is an upward risk, further progress “should be welcomed” has been seen in the past few months. The usual hawkish attitude was slightly weakened.
In the presentation preparation manuscript, it was stated that “if the data to be announced in the future continues to show that the inflation rate is continuously moving towards the 2% target, it will be appropriate to gradually lower the federal fund interest rate (FF interest rate) and prevent monetary policy from becoming excessively restrictive on economic activity and employment.”
On top of that, it was pointed out that “patience is necessary so as not to overreact to a single data and impair the continuous progress of the decline in the inflation rate.”