Call for 'interest rate hike' from powerful Fed official

Fed Governor Michelle Bowman reiterated her call that interest rates will likely need to be raised further to return inflation to the Fed's 2 percent target in a timely manner.

Speaking at the Connecticut Bankers Association, Fed Governor Michelle Bowman stated that U.S. inflation remains "too high."

Bowman said she believes it would be appropriate for the Federal Open Market Committee to raise interest rates further and hold them at a restrictive level for some time to ensure inflation reaches the 2 percent target in a timely manner, adding: "I caution that high energy prices could reverse some of the progress we have seen in inflation in recent months."

Bowman did not provide a direct comment on whether she would support an interest rate hike at the Fed's next meeting, scheduled for October 31 and November 1.