Bowman Signals a Possible Shift in Federal Reserve's Interest Rate Policy
Federal Reserve Vice Chair Michelle Bowman suggests an interest rate cut may be imminent, as she's increasingly concerned about risks to the job market and less worried about inflation from tariffs. Bowman's dovish stance is supported by Fed Governor Christopher Waller, indicating a potential policy shift.
The Federal Reserve's Vice Chair for Supervision, Michelle Bowman, recently noted the potential for an imminent interest rate cut, citing increasing concerns about the job market. The central bank official, appointed by President Donald Trump, indicated that worries about inflation triggered by trade tariffs are waning.
During a speech in Prague, Bowman emphasized the importance of adjusting the policy rate, as inflation appears to be stabilizing around the 2% mark. She reiterated her readiness to support a rate reduction in the next meeting if inflation pressures stay contained, to maintain a healthy labor market.
Bowman's stance aligns with Fed Governor Christopher Waller, who also sees a rate cut as possible. This comes amid President Trump's pressure on the Fed for significant rate cuts. Bowman's remarks suggest optimism about the economy, despite ongoing uncertainties arising from inconsistent trade policies.
(With inputs from agencies.)
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