Inflation progress has stalled, says Fed Governor Bowman
The US economy has remained resilient despite signs of fragility in the labor market.
The longer the Iran war continues, the greater the risks to inflation become, with an extended energy shock potentially putting upward pressure on inflation later this year.
The current moderately restrictive policy stance aims to support employment while lowering inflation, and the Fed can look through a temporary energy shock if it maintains credibility on monetary policy.
Bowman is optimistic that an end to the conflict will help ease energy prices.