Bowman indicated that the current interest rate range of 4.25% to 4.5% allows patience to assess inflation data. She expects inflation to drop but acknowledges potential risks that could lead to upward pressure.

Highlighting the expected decrease of the PCE index inflation from 2.8% to 2.6%, Bowman noted this level still exceeds the Fed’s target of 2%. Focus remains on economic indicators and tariff impacts prior to further adjustments.