Fed's Bowman says US policy rate may need to rise further

Federal Reserve Governor Michelle Bowman on Wednesday repeated her view that despite "some progress" on inflation, the U.S. central bank will probably need to tighten monetary policy further to restore price stability.

"Inflation remains well above the FOMC's 2 per cent target," Bowman said in remarks prepared for delivery in Marrakech, Morocco, referring to the U.S. rate-setting Federal Open Market Committee.

She added that the pace of U.S. spending was strong and the job market remains tight.

"This suggests that the policy rate may need to rise further and stay restrictive for some time to return inflation to the FOMC's goal," she said.

A number of Bowman's colleagues have suggested that the recent rise in longer-term Treasury yields may help slow the economy, allowing the Fed to take less action on rates.