Fed's Bowman (voter) says progress on lowering inflation has stalled, would consider a shift in the policy outlook if war-driven inflation broadens
- It was good for the Fed to keep an easing bias in the April 29 policy statement.
- The US economy has remained resilient despite labour market fragility.
- Want more clarity on the war's impact on the economy.
- The longer the Middle East war continues, the greater the risks to inflation.
- An extended energy shock would pressure inflation later this year.
- Fed's current "moderately restrictive" policy is aimed at aiding jobs and lowering inflation.
- Optimistic that the end of the war will bring lower energy prices.
- Reacting to a temporary energy shock could weigh on the economy.
- Fed can look through an energy shock if it remains credible on monetary policy.
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