What do you believe is the single most important factor driving up the cost of living in Nigeria?

Federal Reserve Governor Michelle Bowman said Tuesday she thought her colleagues should have taken a more measured approach to last week's half percentage point interest rate cut as she worries that inflation could reignite.

Bowman was the lone dissenter from the Federal Open Market Committee's decision to lower benchmark interest rates for the first time in more than four years. No governor had dissented from an interest rate decision since 2005.

In explaining her rationale, Bowman said the half percentage point, or 50 basis point, reduction posed a number of risks to the Fed's twin goals of achieving low inflation and full employment.

The jumbo cut "could be interpreted as a premature declaration of victory on our price-stability mandate. Accomplishing our mission of returning to low and stable inflation at our 2 percent goal is necessary to foster a strong labor market and an economy that works for everyone in the longer term," she said in remarks to a bankers group in Kentucky.

Inflation by the Fed's preferred metric is running at 2.5%, above the central bank's 2% goal. Excluding food and energy, core inflation is at 2.6%.

Though Bowman favored a reduction, she preferred the Fed lower by a quarter percentage point, more in line with the traditional moves at the central bank. The FOMC last cut by half a point in the early days of the Covid pandemic in March 2020, and before that the global financial crisis in 2008.

• Read More