Fed Gov. Bowman monitoring data to assess if policy is sufficiently restrictive

Fed Governor Bowman speaks and says:

• Observational data for policy evaluation are sufficiently restricted.
• Fundamental expectations are that inflation will fall further as interest rates hold but sees risks.
• Remaining cautious in interest rate change decisions, and being willing to raise interest rates if the progress of inflation stalls or reverses.
• Inflation will remain high for some time
• We have yet to see further progress on inflation this year.
• The decline in inflation in the latter half of last year was temporary.
• Economic activity in the United States may have declined, but spending on consumer services is strong, and business investment has strengthened.
• Progress in rebalancing the labor market has slowed.
• Focusing on issues such as climate change can distract bank management and supervisors.

Fed Governor Bowman is a permanent voting member of the Federal Reserve Board. Her comments are more extreme.

US bond yields are trading at session highs:

• The two-year yield is 4.818%, +2.7 basis points
• The 5-year yield is 4.436%, +3.7 basis points
• 10-year yield 4.414%, +3.7 basis points
• 30-year yield 4.552%, +3.5 basis points

Both the S&P and NASDAQ are now in negative territory. The S&P fell -5.0 points or -0.11%. The Nasdaq fell -21 points, or -0.13%.