Federal Reserve Governor Michelle Bowman said she wants to see additional progress on inflation before the central bank lowers interest rates further, and questioned how restrictive policy might be given the economy’s strength.

After cutting rates by a percentage point between September and December, the Fed held steady in January. Bets in interest-rate futures markets reflect a conviction among traders that the Fed will likely stay in a wait-and-see mood until June at the earliest, but that more rate cuts are in store for the second half of 2025.