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Fed Sees Rates Staying High for 'Some Time'

High inflation is keeping the rates in place

Federal Reserve officials say that monetary policy will need to stay restrictive for "some time" to bring inflation back down to the Fed's 2 percent target, but their unity around that phrase masks an ongoing debate over another possible rate hike this year.

"I remain willing to support raising the federal funds rate at a future meeting if the incoming data indicates that progress on inflation has stalled or is too slow to bring inflation to 2 percent in a timely way," Fed Governor Michelle Bowman said Monday in prepared remarks to a banking conference.

Despite considerable progress, she said, "inflation continues to be too high, and I expect it will likely be appropriate for the (Fed) to raise rates further and hold them at a restrictive level for some time."

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