Fed Governor Bowman: Such a Dramatic First Rate Cut Could Unnecessarily Restore Inflationary Pressures

On September 25, some senior Fed officials also expressed concern that inflation had not yet been defeated, with Fed Governor Bowman explaining in a statement that such a dramatic first rate cut could unnecessarily revive inflationary pressures. Bowman was reportedly the only Fed governor to vote against the rate cut last week. As of Tuesday, inflation swaps and U.S. Treasury inflation-protected securities were suggesting that inflation could hover above the Fed's 2 percent target for the next few years, if only moderately.