US Federal Reserve Governor Michelle Bowman said she expects another 75 basis points interest rate increase at the central bank's next meeting in July.
"The inflation data show that, after moderating slightly for a short time, price increases for motor vehicles have picked up again, energy prices rose sharply in May, and prices for food have risen more than 10% from a year ago," she said Thursday at the Executive Officers Conference held by Massachusetts Bankers Association.
"The inflationary effect from the invasion of Ukraine has proven to be lasting for both energy and food commodity prices, with little prospect of the conflict or those price pressures abating very soon," she added.
Bowman said global supply chain issues continue, partly because of the ongoing COVID-19 lockdowns in China, which have slowed production and shipping.
Noting that the Fed has so far increased interest rates by 150 basis points since March to fight inflation, Bowman said she supports an increase of another 50 basis points in the following meetings.
"Since inflation is unacceptably high, it doesn't make sense to have the nominal federal funds rate below near-term inflation expectations. I am therefore committed to a policy that will bring the real federal funds rate back into positive territory," she explained.