Federal Reserve Governor Suggests Potential Support for July Rate Cut

BlockBeats News, June 23rd, Federal Reserve Governor Bowman stated: "If inflationary pressures are under control, I will support lowering the policy rate as soon as possible at the next meeting to bring it closer to a neutral level and maintain a healthy labor market." Bowman has been closely monitoring inflation risks throughout last year.

She said that due to the expected excess capacity in the economy this year, she believes that the price increases resulting from tariffs will be "small and one-off." She described the labor market as strong and expected to be close to full employment levels.

However, she also cited evidence of vulnerabilities, including a weakening labor market dynamism, slowing economic growth, and narrow-based employment gains, thus believing that the Fed should "place more emphasis on the downward risks facing the employment objective" in its future decisions. This is the first substantive comment Bowman has made on the economic outlook since being nominated by Trump this spring and confirmed by the Senate to serve as Vice Chair for Supervision at the Federal Reserve.