Fed Governor Bowman hints: May support rate cut in July

ChainCatcher news, according to Jinshi reports, Federal Reserve Governor Bowman stated: "If inflationary pressures are controlled, I will support lowering the policy interest 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 very focused on inflation risks since last year. She mentioned that due to the expectation of more idle capacity in the economy this year, she believes that the price increases caused by tariffs will be 'modest and one-time.' She described the labor market as solid and expected it to be close to full employment levels.

However, she also cited evidence of vulnerabilities, including weakened labor market vitality, slowing economic growth, and a narrow concentration of job growth, and therefore believes that the Federal Reserve should 'pay more attention to the downside risks facing the employment goal' in future decisions. This is the first substantive comment on the economic outlook from Bowman since she was nominated by Trump and confirmed by the Senate as the Vice Chair for Supervision of the Federal Reserve this spring.