Fed official: Inflation lasting longer than expected

Federal Reserve Governor Michelle Bowman said on Tuesday that the US may see inflation lasting longer than expected a few months ago.

Bowman did not comment on her outlook for monetary policy in remarks prepared for a virtual event hosted by the Richmond Fed.

However, she noted the obstacles making it difficult for many women to work, combined with an increase in retirements. She explained that this could hinder the labour market recovery and be a drag on the US economy.
”Women with young children left the labour force at a higher rate than other workers and some are still struggling to find childcare they can afford”, Bowman said.

The US dollar has struggled against its rival currencies which have been recently boosted by expectations of sooner than previously expected interest rate hikes. Additionally, U. S. Treasury yields have appeared to stabilize on which has likely reduced demand for the dollar.