Federal Reserve Governor Michelle Bowman stressed the importance of proceeding cautiously with potential interest rate cuts due to a slowdown in progress towards reducing inflation.

During a speech at the Forum Club of the Palm Beaches in West Palm Beach, Florida, she expressed her preference for a thorough evaluation of the policy rate's trajectory in order to gain a better understanding of the economy's proximity to its target.

Bowman emphasized the need to closely monitor the labor market, as the inflation objective has not yet been met. Her remarks indicate that any future decisions regarding rate adjustments will be made with careful consideration of economic indicators and ongoing developments.