Fed's Bowman sees time to 'wait and see' on further rate action

San Francisco Federal Reserve President Mary Daly told Reuters in an interview that the US central bank will probably need to increase short-term interest rates further to rein in too-high inflation, but signaled there's no need to do so at the upcoming October 27-28 meeting. "We are more likely than not to need additional adjustments, but the timing of those adjustments to me is something we’re still deliberating," Daly said.

The Fed's last policy move was a quarter-percentage-point rate hike in September, bringing the target range to 3.75%-4.00%.

Bowman's remarks contrast with those of Boston Federal Reserve President Susan Collins, who on Tuesday suggested that additional rate increases would be necessary before the end of the year to curb persistent inflation.

In separate comments, Bowman addressed the capital requirements for data center construction, emphasizing the need for adequate funding from banks and other sources to support the economy. She also advocated for a "complete reorganization" within the Fed to enhance supervision and accountability, following a review she commissioned into the Silicon Valley Bank's failure in 2023.