Michelle Bowman said such a big initial rate cut could complicate the Fed's mission of getting inflation back to its 2% target.

MORE: What does the Fed interest rate cut mean for mortgages and homebuyers? By the end of 2024, interest rates will fall another half of a percentage point from their current lev

Here’s how inflation and the cost of borrowing have changed since the Fed started raising interest rates in March 2022. After peaking at 9.1% in June 2022, inflation has eased, falling to a three-year low of 2.5% in August, just above the Fed’s 2% target rate.