Federal Reserve governor Michelle Bowman said there is still work to do to bring inflation closer to 2% as price pressures persist and labor market conditions appear to be firming.
Delivering remarks in Washington, D.C., on Tuesday, Bowman said the recently released consumer price index data suggest that inflation pressures may persist for longer.
October's firmer-than-expected inflation data Tuesday underscored the case for market participants to place their bets on an additional rate hike in December.
Before the Fed's next meeting, Bowman said the Fed will receive the PCE inflation report for October and the employment report for November.
Bowman said time will help the Fed learn more about the durability of momentum in artificial intelligence-related demand and the evolution of geopolitical risks, both of which could be critical in the months ahead for setting the central bank's policy stance.
"Today, I am seeing signs that inflation pressures are persisting, while labor market conditions appear to be firming. This indicates that there is still work to do to bring inflation closer to 2%," published text of her remarks said.
Other voting officials, such as Dallas Fed President Lorie Logan, said Tuesday the central bank may need to implement additional rate increases more rapidly. Speaking in London before the CPI data were released, Fed governor Christopher Waller said a third warm monthly core inflation reading could put a half-point increase on the table next month.
The Fed held interest rates steady last month after raising them by a quarter point in September.
"Consistent with my views following our September FOMC meeting, I continue to focus on interpreting the underlying trends in the economy and the evolution of financial conditions," Bowman said.
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