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Interest Rates · November 10, 2026 · 2 min read

Bowman weighs persistent inflation against tighter financial conditions

By Econ Data Tools Editorial Team

Published November 10, 2026 • Updated November 10, 2026

In November10 remarks, the Fed vice chair described inflation risks and AI financing concerns while keeping the policy path conditional. Her projected October core PCE figure is not a released reading.

Federal Reserve Vice Chair for Supervision Michelle Bowman said on November 10, 2026 that inflation was proving more persistent than she had expected while labor-market conditions appeared to be firming. Speaking at the Council on Foreign Relations in Washington, D.C., she said bringing inflation down remained a priority. Her remarks reflect her own views, not a new Federal Open Market Committee decision. Bowman said she supported holding the federal funds target range at 3.75% to 4% in October to assess incoming data and the effect of the recent rate increase. She also said financial conditions had tightened amid market volatility. In her account, the benefits of further tightening must be weighed against costs for interest-rate-sensitive sectors. She described tariffs, energy and AI-related demand as important sources of price pressure, rather than attributing the inflation problem mainly to a tight labor market. Her expectation was that some of those pressures would fade next year, but she warned they could broaden or become embedded in expectations. That is a conditional outlook, not evidence that the pressures have already disappeared. Bowman said the October CPI suggested that twelve-month core PCE inflation likely rose to 3.3%. That figure is her estimate ahead of the official October PCE release, not an already published PCE result. She said the committee would receive that report and November employment data before its next meeting in December. On AI, she described strong investment alongside growing reliance on credit, equity financing and complex off-balance-sheet commitments. If revenues disappoint, she said, a correction in valuations and tighter credit could slow the buildout and soften activity and inflation. These are risks she is monitoring, not a finding that a collapse has occurred or a verified explanation of a particular day's market move. Bowman said monetary policy was not on a preset course and that decisions would depend on data, the outlook and risks to employment and price stability. The speech does not commit the committee to a particular December increase, establish market-implied odds or verify closing stock and Treasury prices. Those claims should remain separate from her policy assessment.

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