Fed Governor Bowman said it is too early to assess the Iran war's impact on
inflation and policymakers should adopt a "temporary look-through" stance toward
short-lived price shocks. She backed keeping language in last month's
post-meeting statement that left open the possibility of further rate cuts, a
position that contrasts with a growing number of colleagues who want the Fed to
signal the next move could be either a hike or a cut. Bowman said she wants
clearer evidence on the economic impact and persistence of the Middle East
conflict before revising the expected policy path and that temporarily
overlooking energy-driven upticks in inflation is appropriate so long as the Fed
preserves its credibility on the inflation target.
