- AI research uncovers 300 ancient etchings in Peru's Nazca desert
- Brazil's Lula calls Security Council makeup 'unacceptable'
- Alarm grows as Israel launches new 'extensive' strikes on Lebanon
- Carey blasts Australia to 304-7 against England in 3rd ODI
- Biden warns against clinging to power in UN farewell
- Alarm grows as Israel launches new strikes on Lebanon
- Biden warns at UN against 'full-scale war' over Lebanon
- 'Monumental step' as Thai king signs same-sex marriage into law
- French lake still riddled with bombs 80 years after World War II
- Alberta Ferretti quits as creative director at brand she founded
- Two killed in Mexico as Hurricane John weakens to tropical storm
- Multiple arrests after US woman uses machine-assisted suicide in Switzerland
- Dubois will next fight Joshua or Usyk, 'whoever pays me the most'
- Stock markets surge on China stimulus
- Lopetegui ready to learn from mistakes as Liverpool loom in League Cup
- US Fed dissenter warns inflation risks remain 'prominent'
- UN chief warns Lebanon on 'brink' as world leaders gather
- Surprise start for Libbok as Etzebeth set for Springboks record
- Ten Hag says expanded schedules make injuries 'almost unavoidable'
- Liverpool boss Slot praises Alexander-Arnold's defensive work
- Barca coach backs Pena but will debate new goalkeeper signing
- UN says tens of thousands flee Lebanon strikes
- Asian stock markets lead rally on China stimulus
- Arteta stands by defensive tactics in fiery Man City clash
- Tropical Storm John hits Mexico's Pacific coast
- Sri Lanka's new leader appoints cabinet ahead of expected snap polls
- Singapore ex-minister convicted in rare graft trial
- UK town catches Subbuteo fever
- France facing 'one of worst deficits' in its history: minister
- China's Olympic champ Zheng embraces big home expectations
- Biden bids farewell to UN, in shadow of Trump
- All Blacks seek to end Wellington jinx, with Cane poised for 100th cap
- Postbank (Постбанк) анулює рахунки українців у Німеччині
- Meryl Streep says a 'squirrel has more rights' than an Afghan girl
- Postbank terminates accounts of Ukrainians in Germany
- Hong Kong, Shanghai lead markets rally after China stimulus
- Dutch paint giant Akzonobel slashes 2,000 jobs worldwide
- Sri Lanka's new leader to call snap parliamentary polls
- In Ukraine's Pokrovsk, some quietly waiting for Russian troops
- Singapore ex-minister pleads guilty in rare graft trial
- Fishy business caught by fraying India-Bangladesh ties
- US Open champion Sabalenka chases year-end number one ranking
- New Zealand scientists discover ghostly 'spookfish'
- Trump slams early voting, even while urging Pennsylvanians to do so
- Singapore ex-minister pleads guilty to bribery in rare graft trial
- Major Hurricane John hits Mexico's Pacific coast
- IMF says ready for talks with Sri Lanka's new leftist government
- Phillies clinch division title, eye top seed
- Bills trample Jaguars, Commanders claw Bengals
- China unveils fresh stimulus to boost ailing economy
US Fed dissenter warns inflation risks remain 'prominent'
The sole Federal Reserve official not to support last week's large interest rate cut said Tuesday that the risks of inflation reigniting remained "prominent."
Michelle Bowman's vote in favor of a smaller cut of a quarter percentage-point instead made her the first official on the Fed's rate-setting committee to dissent from the majority for more than two years.
Speaking in the US state of Virginia on Tuesday, Bowman said "the upside risks to inflation remain prominent."
The US central bank has a dual mandate from Congress to tackle both inflation and unemployment, and has signaled in recent months that it sees the two goals coming into better balance as inflation eases and the labor market continues to cool.
In contrast to some of her colleagues, Bowman said she had taken her decision, in part, because she still saw "greater risks to price stability, especially while the labor market continues to be near estimates of full employment."
A larger rate cut could have been interpreted by the financial markets as a signal that the Fed "sees some fragility or greater downside risks to the economy," Bowman said, adding that she feared people might assume it would maintain the same pace of cuts going forward.
Bowman also raised concerns about the "considerable amount of pent-up demand and cash on the sidelines ready to be deployed as the path of interest rates moves down," which, she argued, ran the risk of reigniting inflation.
"Finally, in dialing back our restrictive stance of policy, we also need to be mindful of what the end point is likely to be," Bowman told the conference in Virginia.
She said she expected the so-called neutral rate to end up "much higher" than it was before the pandemic.
"Therefore, I think we are much closer to neutral than would have been the case under pre-pandemic conditions, and I did not see the peak stance of policy as restrictive to the same extent that my colleagues may have," she added.
L.Miller--AMWN