Fed Governor Bowman hints support for a July rate cut.

Yesterday, Bowman said: “If inflationary pressures are contained, I will support lowering the policy rate as soon as the next meeting to bring it closer to neutral and maintain a healthy labor market.” Bowman, who has been focused on inflation risks over the past year, added that this year's expected economic slack would make the tariff-induced price increases “small and one-off.” She described the labor market as solid, with full employment expected, but also cited weaknesses such as waning vitality, slower growth, and narrow jobs expansion. Therefore, she believes the Fed should “better weigh downside employment risks” in future decisions. This is her first substantive comment on the economy since being nominated by Trump and confirmed as Fed Vice Chair for Supervision this spring.