Federal Reserve Governor Michelle Bowman expressed concern that the central bank's recent half-percentage point interest rate reduction could be perceived as premature and risk reigniting inflation.
Fed Governor Michelle Bowman said Tuesday she thought her colleagues should have taken a more measured approach to last week's half percentage point interest rate reduction.
US Federal Reserve Governor Michelle Bowman attends a "Fed Listens" event at the Federal Reserve headquarters in Washington, DC, on October 4, 2019.Federal Reserve Governor Michelle Bowman said Tuesday she thought her colleagues should have taken a more measured approach to last week's half percentage point interest rate cut as she worries that inflation could reignite.to lower benchmark interest rates for the first time in more than four years.
The jumbo cut "could be interpreted as a premature declaration of victory on our price-stability mandate. Accomplishing our mission of returning to low and stable inflation at our 2 percent goal is necessary to foster a strong labor market and an economy that works for everyone in the longer term," she said in remarks to a bankers group in Kentucky.
Though Bowman favored a reduction, she preferred the Fed lower by a quarter percentage point, more in line with the traditional moves at the central bank. The FOMC last cut by half a point in the early days of the Covid pandemic in March 2020, and before that the global financial crisis in 2008.
Fed Interest Rates Inflation Economy Monetary Policy
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Fed Governor Bowman explains dissent on rate vote, says she’s worried about inflationJeff Cox is a finance editor with CNBC.com where he covers all aspects of the markets and monitors coverage of the financial markets and Wall Street. His stories are routinely among the most-read items on the site each day as he interviews some of the smartest and most well-respected analysts and advisors in the financial world.
Read more »
Into The Fire's Brenda Bowman Today: What Happened To Aundria Bowman's Adoptive MotherA Photograph Of Aundria Bowman In Netflix&39;s Into The Fire: The Lost Daughter
Read more »
Bowman Dissents as Fed Cuts Interest Rates by Half-PointFederal Reserve Governor Michelle Bowman expressed her disagreement with the central bank's decision to reduce interest rates by 50 basis points, opting instead for a smaller 25 basis point cut. She cited concerns about inflation and uncertainty in labor market data.
Read more »
Fed's Bowman voted against jumbo cut to avoid signaling victory on inflationFed's Bowman voted against jumbo cut to avoid signaling victory on inflation
Read more »
Fed's Bowman: Would have liked a smaller first cutFederal Reserve (Fed) Board of Governors member Michelle Bowman clarified on Friday why the policymaker voted against the Fed's 50 bps jumbo rate cut this week.
Read more »
USD/JPY weakens near 143.50, focus on Fed’s Bowman speechThe USD/JPY pair trades with mild losses near 143.55 during the early Asian session on Tuesday.
Read more »