ChainCatcher news, according to Jinshi reports, Federal Reserve Governor Bowman stated: "If inflationary pressures are controlled, I will support a timely reduction in policy interest rates at the next meeting to bring it closer to neutral levels and maintain a healthy labor market."
"Bowman has been very focused on inflation risks last year. She said that due to the expectation of more idle capacity in the economy this year, she believes that the price increases caused by tariffs will be "modest and one-time". She described the labor market as solid and expected to be close to full employment levels.
However, she also cited evidence of vulnerabilities, including weakened labor market vitality, slowing economic growth, and a narrow concentration of job growth, and therefore believes that the Federal Reserve should "place greater emphasis on the downside risks facing the employment target" in future decisions. This is the first substantive comment on the economic outlook from Bowman since she was nominated by Trump and confirmed by the Senate this spring to serve as Vice Chair for Supervision at the Federal Reserve.
