A top Federal Reserve official, Michelle Bowman, says that the recent weaker-than-expected jobs report strengthens her case for three interest rate cuts this year. The data showed fewer workers hired last month than expected and lower hiring in previous months. Bowman believes the tariffs imposed by President Donald Trump will not significantly impact inflation, which is getting closer to the Fed’s 2% target.
The Fed has been keeping interest rates steady since the pandemic, but Bowman thinks it should consider cutting them to boost the economy. However, such a move could lead to higher inflation. The Fed must balance keeping the job market strong with controlling inflation.
Bowman’s comments come as expectations rise for an interest rate cut at the next Federal Reserve meeting in September. Trump has been calling for lower interest rates and may have the opportunity to appoint a new member to the Fed’s board of governors, further influencing the central bank’s decisions.
Source: https://apnews.com/article/federal-reserve-michelle-bowman-interest-rates-d24adfa4429586bb95f538c3fe0a2989