Senior Fed officials said Saturday that this month was amazing Weak report on U.S. job market She is strengthening her belief that interest rates should be lowered.
Michelle Bowman was one of two Federal Reserve officials who voted to lower interest rates a week and a half ago. Such actions can help promote the economy by realizing the economy Cheap people borrow money to buy a house or a car, but it may also be possible to push inflation higher.
Bowman and a dissident Nine other Fed officials vote to keep interest rates stablejust like the Fed does all year round. Fed’s Chair Jerome Powell has always believed he wants to wait for more on how President Donald Trump’s tariffs Inflation is affecting before the Fed takes its next move.
“The latest labor market data strengthened my point of view” that the Fed should cut interest rates triple this year, Bowman said in a speech at a banker meeting in Colorado on Saturday. The Fed has only three meetings left in its 2025 schedule.
The work report received last week arrived just days after the Fed voted for interest rates, indicating that employers hired fewer workers last month than economists expected. It also said that recruiting in the first few months was much lower than initially thought.
Meanwhile, Bowman said her tariffs on Trump “will not have a persistent shock to inflation” and saw it closer to the Fed’s 2% target. Inflation has dropped significantly since reaching a peak of more than 9% after the pandemic, but has remained stubbornly above 2%.
The Fed’s job is to keep the job market stable while maintaining inflation. Its challenge is that it has a major tool to affect both areas and helping one area by raising or falling interest rates usually means hurting the other.
There are concerns that Trump’s tariffs may be held by insisting on the economy as “stagnation” in the worst case, which is stagnant but inflation is high. The Fed does not have good tools to solve this problem, and it may have to prioritize the job market or inflation before helping the other party.
On Wall Street, expectation for the Fed to lower expectations for the U.S. employment report at its next meeting in September.
Trump has been angrily demanding lower interest rates Personal insult Powell While doing so. He has a chance Add another person to the Fed’s board A governor Former President Joe Biden appointedResigned recently.
