Fed Governor Bowman Supports Three Rate Cuts Amid Labor Market Slowdown

Federal Reserve Governor Michelle Bowman has advocated for three interest rate cuts this year, emphasizing concerns over a weakening labor market and slowing economic growth. She dissented against the Fed's decision to hold rates steady in July, supporting a 0.25% cut and urging policymakers to begin rate reductions at the September meeting to prevent further deterioration in labor market conditions. Bowman noted that recent data showing a sharp slowdown in job growth, with only 73,000 jobs added in July and downward revisions to prior months, support the need for rate cuts. She also expressed confidence that tariff-related price increases will not cause persistent inflation, aligning with signs of softening demand and inflation moving toward the 2% target. Additionally, Bowman announced she will host a community banking conference on October 9 to discuss potential capital framework reforms for community banks facing competitive pressures from larger institutions. Other Fed officials, including Governors Christopher Waller, Lisa Cook, and Presidents Mary Daly and Neel Kashkari, have also signaled support for rate cuts amid labor market concerns.