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

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.

Newsquawk StaffPublished On the live feed at , 20 minutes before this page
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Fed's Bowman (voter) says Fed should be ready to cut rates again amid job market risks

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POLICY STANCE:

  • 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:

  • 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

ECONOMY:

  • 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
Context

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.

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