Fed’s Bowman Pushes for Immediate Rate Cuts Citing Weak Jobs Data
Fed’s Bowman Pushes for Immediate Rate Cuts Citing Weak Jobs Data
A top Federal Reserve official, Michelle Bowman, has intensified her call for interest rate reductions, asserting that the latest weaker-than-expected U.S. jobs report significantly strengthens the argument for lower rates.
Speaking Saturday, Bowman, who was one of two dissenting votes at the recent Fed meeting favoring rate cuts, reiterated her belief that the central bank should implement three rate cuts before the end of 2025. This stance comes after last week’s jobs report showed far fewer new hires than economists anticipated, along with downward revisions for previous months.
Bowman also expressed growing confidence that President Donald Trump’s tariffs will not cause a persistent inflationary shock, seeing inflation moving closer to the Fed’s 2% target. Despite this, the Fed’s primary challenge remains balancing a strong job market with inflation control, especially with concerns about potential stagflation.
On Wall Street, expectations are mounting for a rate cut at the Fed’s next meeting in September, largely fueled by the disappointing jobs data. The central bank has only three scheduled meetings remaining this year.
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