Michelle Bowman is a Governor on the Board of the U.S. Federal Reserve and as such has a permanent vote on the Federal Open Market Committee (FOMC).
Bowman citied the collapse in the US labour market in her reasoning arguing for three rate cuts from the Federal Reserve by the end of 2025. The July nonfarm payrolls report showed major downward revisions to prior months:
Bowman was speaking at a bankers’ conference in Colorado Springs, on Saturday. The Wall Street Journal (gated) report:
- the apparent weakening in the labor market outweighs the risks of higher inflation to come
- expects to support three rate cuts over the Federal Reserve’s three remaining meetings this year
- “With economic growth slowing this year and signs of a less dynamic labor market becoming clear, I see it as appropriate to begin gradually moving our moderately restrictive policy stance toward a neutral setting”
—
All last we’ve been hearing from Fed officials talking up the prospect of a September FOMC rate cut. Daly, Waller, Williams, Kashkari and others. Its on.
There are only three more meetings this year:
- September 16-17
- October 28-29
- December 9-10
Bowman wants a cut at each of them.
