Federal Reserve Governor Suggests Possible Support for Rate Cut in July

According to reports from FXStreet, Federal Reserve Governor Bowman indicated that she would support lowering policy rates at the next meeting if inflation pressures are under control, in order to bring rates closer to a neutral level and maintain a healthy labor market. Bowman has been closely monitoring inflation risks. She mentioned that due to expected excess capacity in the economy this year, she believes that the price increases from tariffs will be small and one-off. She described the labor market as solid and expected to be close to full employment levels. However, she also cited evidence of vulnerabilities, including weakening labor market dynamics, slowing economic growth, and narrow job growth, leading her to believe that the Fed should pay more attention to the downside risks facing employment goals in future decisions. This is the first substantive comment on the economic outlook from Bowman since being nominated by Trump in the spring and confirmed by the Senate as Vice Chair for Supervision of the Federal Reserve.

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