On November 11, Federal Reserve Vice Chair for Supervision Michelle Bowman said that inflationary pressures remain, the labor market is becoming more solid, and inflation still has room to fall. She expects core PCE to rise 3.3% year-on-year in October, driven mainly by higher energy prices and AI-related demand, but the lack of progress on inflation is not due to an overheated labor market. Bowman expects core PCE to move toward 2% next year as pressures from the AI construction boom and Middle East conflict fade. On policy, she noted that the recent decline in stock prices, rising U.S. Treasury yields, and a stronger dollar have already tightened financial conditions, while the economy has strengthened this year. She emphasized that, against this backdrop, the benefits of further monetary tightening must be carefully weighed against the costs to interest-rate-sensitive sectors. The sustainability of AI demand and the evolution of geopolitical risks will be important determinants of the direction of monetary policy in the coming months. She did not explicitly call for a rate hike, but stressed that the Federal Reserve still needs to bring inflation back to its 2% target.