US Fed governor opens door to half-point rate hike in March

Federal Reserve Governor Michelle Bowman says she's open to lifting interest rates by more than the traditional quarter-point at the central bank’s next meeting in March

WASHINGTON -- Federal Reserve Governor Michelle Bowman said Monday that she was open to lifting interest rates by more than the traditional quarter-point at the central bank's next meeting in March.

Bowman's comments came after several officials on Friday pushed back against the idea of a half-point increase in the Fed's benchmark short-term interest rate. The Fed is looking to raise rates as inflation surged to 7.5% in January compared with a year earlier, the biggest increase in four decades.

James Bullard, president of the Federal Reserve Bank of St. Louis, has expressed support for a half-point hike sometime at the Fed's next three meetings. The Fed is almost certain to start lifting interest rates at its March 15-16 meeting, with most officials who have expressed views supporting a quarter-point increase.

Bowman said in prepared remarks to an American Bankers Association Conference in Palm Desert, California, that she supported lifting rates next month and that “if the economy evolves as I expect, additional rate increases will be appropriate in the coming months.”