Feds Bowman: Further interest rate increases likely appropriate with inflation still high

<p>A second Fed governor is speaking. FOMC member Bowman is on the wires saying:</p><ul><li>Further interest rate increases likely appropriate with inflation "still too high."</li><li>Fed policy will need to be held at a restrictive level "for some time" to return inflation to 2% "in a timely way."</li><li>Continued risk of further increase in energy prices could reverse some of the recent progress on lowering inflation.</li><li>Economy still growing at a "solid pace," with robust consumer spending and solid job gains.</li><li>Bank lending standards have tightened but no sign of a "sharp contraction" of credit that would significantly slow the economy.</li><li>Expect progress on inflation is "likely to be slow" under current conditions, suggesting the need for even tighter policy.</li><li>It's imperative that bankers provide feedback on recent plans to toughen bank rules.</li></ul><p>Bowman comments are a little more hawkish compared to Collins from earlier today. It is interesting she says that "further interest rate increases" – plural. </p>

This article was written by Greg Michalowski at www.forexlive.com.