KEY TAKEAWAYS:
Bowman calls for three Fed rate cuts in 2025
Weak jobs report strengthens argument for lower rates
Inflation trending toward Fed’s 2% target despite tariffs
Wall Street expects a September rate cut
A top official at the Federal Reserve said Saturday that this month’s stunning, weaker-than-expected report on the U.S. job market is strengthening her belief that interest rates should be lower.
Michelle Bowman was one of two Fed officials who voted a week and a half ago in favor of cutting interest rates. Such a move could help boost the economy by making it cheaper for people to borrow money to buy a house or a car, but it could also threaten to push inflation higher.
Bowman and a fellow dissenter lost out after nine other Fed officials voted to keep interest rates