Svmuureported that Federal Reserve Governor Bowman stated it is currently too early to determine the impact of the Iran war on inflation, and policymakers need to adopt a "look through" approach to temporary price shocks.
Bowman said she supports the decision made by officials last month to retain wording in the post-meeting statement suggesting that further rate cuts remain possible. This stance distinguishes her from a growing number of policymakers, as others want the Fed to signal that its next move could be either raising or lowering interest rates. "In considering the future direction of monetary policy, I want to have a clearer understanding of the economic impact of the Middle East conflict and its persistence. As long as our commitment to achieving the inflation target remains credible, it is appropriate to 'look through' temporary upward data on inflation caused primarily by rising energy prices." (Jinshi)