02:26 PM EDT, 09/24/2024 (MT Newswires) -- Fed Governor Michelle Bowman (voter) said that policy restriction should be reduced gradually due to continued concerns about inflation and a labor market that is likely stronger than recent data suggest.

Bowman elaborated on comments that she made in a statement last week explaining why she voted against the FOMC's decision to lower the target range for the federal funds rate by 50 basis points at its meeting, saying that she still sees inflation as the key issue and that lowering interest rates too quickly could result in a resurgence of price pressures. Bowman voted to lower rates by only 25 basis points.

Recent comments of note:

(Sept. 23) Atlanta Fed President Raphael Bostic (voter) said that the FOMC's decision to lower rates by 50 basis points last week was appropriate given the uncertainty in the path of the labor market. However, the size of the rate reduction is not an indication for the size of future reductions and that future moves will be made based on the incoming information, Bostic said, adding that while the employment data has slowed, it is not dangerously weak.

(Sept. 23) Minneapolis Fed President Neel Kashkari (nonvoter) wrote in an essay that the 50-basis point reduction at the most recent FOMC meeting was "the right decision" given the slowdown in inflation and recent weakness in the employment data. Kashkari said that even with the rate cut, policy remains tight. Later in the day, Kashkari said in a CNBC interview that he believes the FOMC will slow its pace of rate cuts after the larger-than-normal reduction last week.

(Sept. 23) Chicago Fed President Austan Goolsbee (nonvoter) said expects "many more rate cuts over the next year" as the focus shifts to the employment side of the Fed's dual mandate.

(Sept. 20) Federal Governor Christopher Waller (voter) said in an interview with CNBC that inflation is slowing faster than expected, leading him to vote for the 50-basis point rate cut that the FOMC announced at the Sept. 17-18 meeting, and that the Fed is not behind the curve on reducing rates.

(Sept. 20) Fed Governor Michelle Bowman (voter) released a statement explaining her dissent at the FOMC meeting, saying that she voted for a smaller 25-basis point reduction because she did not want a large 50-basis cut to be seen as signaling an end to concerns about inflation.