Fed Governor Bowman: Such a dramatic first rate cut could unnecessarily restore inflationary pressures

Some senior Fed officials have also expressed concerns that inflation has not yet been defeated, with Fed Governor Bowman explaining in a statement that such a dramatic first rate cut could unnecessarily restore inflationary pressures. Bowman was reportedly the only Fed governor to vote against the rate cut last week. As of Tuesday, both inflation swaps and Treasury inflation-protected securities suggested that inflation could hover above the Fed's 2% target in the coming years, even if only moderately. (Jinshi)