Fed Governor Bowman says weak jobs report backs her view for 3 rate cuts this year

Signs Point to More Rate Cuts as Fed Governor Hints at Lower Inflation Ahead

What’s Happening?

Federal Reserve Governor Michelle Bowman reiterated her stance for interest rate cuts this year, citing the recent weak jobs report and eased inflation concerns.

Where Is It Happening?

United States.

When Did It Take Place?

Saturday.

How It’s Unfolding?

– Bowman highlighted the unexpected softness in the latest jobs data.
– She expressed growing confidence that Trump’s tariffs won’t lead to lasting inflation.
– Inflation is seen approaching the Fed’s target 2%.
– Bowman joins a chorus of Fed officials signaling potential rate cuts ahead.

Quick Breakdown

– Fed Governor Michelle Bowman backs lowering interest rates this year.
– Unemployment report below expectations boosts her stance.
– Tariffs’ impact on inflation deemed short-term.
– Inflation trending toward the 2% target.

Key Takeaways

The recent employment data complicating Federal Reserve Governor Michelle Bowman’s outlook on rate cuts this year. Her belief is reinforced by data suggesting that inflation may be easing towards the Fed’s ideal 2% rate, thanks in part to an initial assessment that tariffs under Trump wouldn’t harm long-term inflation. Bowman ranks among those Fed leaders considering a trimmed interest rate, highlighting a possible trend of economic easing soon.

The economy is whispering to us. Listening is crucial before we act.

– Michelle Bowman, Federal Reserve Governor

Final Thought

Bowman’s insights highlight a pivotal shift in Fed thinking. The combination of cooling jobs growth and easing inflation pressures is setting the stage for more flexible monetary policies. As the Fed navigates these signals, the economy could see a shift that favors borrowers and adds velocity to markets.

Source & Credit: https://fortune.com/2025/08/09/fed-rate-cuts-outlook-michelle-bowman-jobs-report-inflation-tariffs/