Federal Reserve Vice Chair for Supervision Michelle Bowman said Tuesday that recent data suggest price pressures are spreading beyond the categories that initially drove inflation. She pointed to the October consumer price report as a sign that inflation may take longer to ease.
In remarks at the Council on Foreign Relations, Bowman said the economy had gained momentum and the labor market appeared to have stabilized. She said tariff effects should fade and energy pressures could ease if the Middle East conflict resolves, while price pressures associated with investment in artificial intelligence remained a concern.
What officials will watch
Fed Governor Christopher Waller said in a separate speech that he was watching whether higher energy costs were filtering into other goods and services. The Associated Press reported that Fed officials were weighing the possibility of faster rate increases as price pressures broadened.
The October report showed consumer prices rose 0.4% from September, as The Red Wing News previously reported. Bowman said officials expect to receive October’s personal consumption expenditures inflation report and November’s employment report before the December meeting. Those releases will give policymakers another look at prices and hiring before they vote.