Michelle Bowman, a member of the Federal Reserve’s Board of Governors, has expressed her support for the recent interest rate cuts while advocating that the December reduction should be deemed the “final step” in the current easing cycle.

Despite the progress that has been made, there are "upside risks to inflation," Bowman added. The Fed's preferred inflation gauge showed a rate of 2.4% in November but was at 2.8% when excluding food and energy, a core measure that officials see as a better long-run indicator.