BlockBeats news, on June 23, Federal Reserve Governor Bowman stated: 'If inflationary pressures are controlled, I would support lowering the policy interest rate as soon as possible at the next meeting to bring it closer to a neutral level and maintain a healthy labor market.' Bowman has been very focused on inflation risks over the past year.
She said that due to the expectation of more idle capacity in the economy this year, she believes that the price increases brought about by tariffs will be 'moderate and one-time.' She described the labor market as solid and expects it 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 to the employment goals' in future decision-making. This is the first substantial comment on the economic outlook made by Bowman since she was nominated by Trump and confirmed by the Senate as the Federal Reserve's Vice Chair for Supervision this spring.