Federal Reserve Governor Michelle Bowman said she sees lingering inflation risks and that policymakers should proceed cautiously with further interest-rate cuts.

Federal Reserve Governor Michelle Bowman said Thursday she still supports "a cautious and gradual approach" to interest-rate reductions, citing stalled progress on lowering inflation. “The rate of inflation declined significantly in 2023,

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.