Federal Reserve Governor Bowman: The Federal Reserve should take a cautious approach to monetary policy

Bowman, the Fed governor, said the central bank should take a cautious approach to monetary policy and could be closer to neutral than policymakers currently believe; inflation remains a concern and progress toward reducing it appears to have stalled. There is a risk that policy rates will fall below neutral before the price stability objective is achieved. Expectations for neutral rates are higher than they were before the COVID-19 pandemic.