Federal Reserve governors Waller and Bowman oppose the Fed's decision not to cut interest rates, both mentioning the weakness in the labor market

ChainCatcher news, according to Jinshi Data reports, Federal Reserve governors Waller and Bowman expressed their concerns, believing that the hesitation of policymakers on interest rate cuts could cause unnecessary damage to the labor market.

In the Federal Reserve's decision to maintain the benchmark interest rate for the fifth consecutive time this week, both Waller and Bowman cast dissenting votes. They favored a 25 basis point rate cut. In their respective statements released on Friday, both explained their reasons for opposition, emphasizing the signs of weakness in the labor market.

Their views differ from those of Powell and other policymakers. Powell and others still believe that the labor market is overall robust, supporting patience in adjusting interest rates.

Waller stated, "I believe the current wait-and-see attitude is overly cautious; in my view, not properly balancing the risks to the economic outlook could lead to policy lagging behind changes in circumstances." He pointed out that, considering future data revisions and stagnation in private sector job growth, the downside risks facing the labor market are rising.

Bowman stated, "The vitality of the labor market is weakening and showing more and more signs of fragility."