"My baseline outlook is that inflation will decline further with the policy rate held at the current level," Bowman said in remarks prepared for delivery to a banking conference in Maui, Hawaii, noting that recent declines in inflation have been "encouraging." If inflation continues to decline sustainably toward the Fed's 2% goal, she said, "it will eventually become appropriate to gradually lower our policy rate to prevent monetary policy from becoming overly restrictive."
Interest rate markets tried to build on last week’s ‘U-turn’ after the accelerated decline in yields triggered by the December Fed policy announcement. Corporates and sovereigns are eager to use lower funding costs to frontload at least part of their 2024 financing needs, with new bond issuance taking a solid start.
Don’t like #Bidenomics much? Hate those interest rates we’re all crawling along under?
WANNA MAKE A CHANGE?
Well, hold up, George – no need to be hasty, now. Brother Jerome just migh.