Fed's Bowman (voter) says Fed should be ready to cut rates again amid job market risks

• Fed should not signal a pause in rate cut campaign
• Risks to Fed's mandate is asymmetric, and Fed should be ready cut again if labour market needs
• Monpol is 'modestly restrictive' at the moment
• Policy should forward looking

• Inflation pressures are easing as tariff impact abates
• Underlying inflation is close to the Fed's 2% target
• Fed has made considerable progress lowering inflation

• Is concerned about labour market fragility
• Policy should be focussed on supporting the jobs market
• Sees solid growth and lower inflation, should stabilise the labour market
• Economy has been resilient

Fed Governor Bowman's comments underscore a dovish tilt, emphasizing that the Fed should remain flexible on rate cuts given potential vulnerabilities in the job market. While inflation appears to be cooling, her focus on supporting the labor market suggests that monetary policy will prioritize economic stability, which could indicate more rate cuts if conditions worsen. This stance may lead to a weaker USD and impact market expectations for future rate moves.