Fed’s Bowman: Some recent further progress on lowering inflation. Remain cautious on cuts

• Labor market continues to loosen, come into better balance
• Unemployment rate is up but still historically low
• Wage gains remain above pace consistent with our goal
• Should incoming data show inflation is moving sustainably toward target, it will become appropriate to gradually lower rates to avoid becoming overly restrictive
• Will remain cautious in my approach to any change in policy stance
• Still see the need to pay close attention to the price-stability side of our mandate while watching for risk of a material weakening in the labor market
• Still sees upside risks to inflation
• We need to be patient and avoid undermining continued progress on lowering inflation by overreacting

She isn’t giving much away here but that’s no surprise as she’s a hawk. Nevertheless, I find it hard to envision a world where she is supporting a 50 bps cut in September.

This article was written by Adam Button at www.forexlive.com.