Ready to raise rates if progress on inflation stalls (Il Sole 24 Ore Radiocor) - New York, 25 Jun - US Federal Reserve governor Michelle Bowman said she expected inflation to remain elevated for a while and that steady interest rates "for some time" were likely what was needed to bring inflation under control.

She also said she was willing to raise rates should progress on inflation stall or even reverse.

"Should the incoming data indicate that inflation is moving sustainably toward our 2 percent goal, it will eventually become appropriate to gradually lower the federal funds rate to prevent monetary policy from becoming overly restrictive," Bowman said in remarks prepared for delivery in London.

"However, we are still not yet at the point where it is appropriate to lower the policy rate." "Reducing our policy rate too soon or too quickly could result in a rebound in inflation, requiring further future policy rate increases to return inflation to 2 percent over the longer run," she said.

She also said that in contrast to the past two years, it is possible over the coming months that the path of monetary policy in the US would diverge from that of other advanced economies.

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(RADIOCOR) 25-06-24 14:52:14 (0464) 5 NNNN