Fed Board Member Leaves Door Open for 0.5%P Rate Hike in March

Michelle Bowman, Member of the Board of Governors of the U.S. Federal Reserve (Fed)
[Photo by Reuters]

[Asia Economy Reporter Cho Hyun-ui] Michelle Bowman, a member of the U.S. Federal Reserve (Fed) Board, has left open the possibility of a 0.5 percentage point interest rate hike in March.

According to Bloomberg on the 21st (local time), Bowman said at the American Bankers Association conference held in Palm Desert, California, "I support a rate hike at our next meeting in March," adding, "If the economy develops as expected, additional rate hikes over the next few months would be appropriate."

When asked whether she supports a 0.5 percentage point hike or a 0.25 percentage point hike, she replied, "That is an issue to be addressed at the Federal Open Market Committee (FOMC) meeting in a few weeks."

She added, "We will closely monitor data to determine the appropriate size of the rate hike at the March meeting," and "It is very important to understand whether the situation improves or worsens from now until then."

Bowman's remarks suggest that opinions on rate hikes are divided even within the Fed. John Williams, president of the New York Federal Reserve Bank and considered the third most influential figure in the Fed, drew a line on the call for a 0.5 percentage point rate hike next month on the 18th, saying, "There is not yet strong evidence to take a 'big step' from the start."

Bowman said on the day, "It is too early to mention the (magnitude) at this point, but I support starting the rate hike process." This implies the possibility of a 0.5 percentage point hike depending on economic conditions, which is expected to increase market uncertainty again.

This content was produced with the assistance of AI translation services.