Fed Dissent Grows as Bowman Pushes Rate Cuts

US Federal Reserve Vice Chair Michelle Bowman has reiterated her support for three interest rate cuts in 2025, citing recent labor market weakness and viewing recent inflation spikes from tariffs as temporary. Bowman argues that proactive rate reductions are necessary to prevent further labor market deterioration and help return inflation to the Fed’s 2% target once tariff effects dissipate. Her stance underscores growing divisions within the Fed, exemplified by her dissent at the latest policy meeting. The recent resignation of Fed Governor Adriana Kugler paved the way for President Donald Trump's nomination of Stephan Miran, another advocate for dovish monetary policy, which is expected to further weaken the US dollar in the short term. This dissent is mirrored internationally, as the Bank of England also faces significant internal disagreement over policy direction. These developments highlight rising uncertainty and diverging views among central bankers about how best to balance inflation control with economic growth.