Bowman, a member of the Board of Governors of the Federal Reserve, recently delivered an important speech regarding the economic outlook, her first since taking office as Vice Chair for Supervision. She stated that if inflation pressures are effectively controlled, she would support a drop in interest rates at the next monetary policy meeting to bring the policy rate closer to neutral while maintaining a healthy labor market.

Bowman pointed out that although the current labor market remains robust and is close to full employment levels, there are also some concerning signs. These signs include a weakening of labor market vitality, slowing economic growth, and employment growth concentrated in a few sectors. Based on these observations, she believes that the Federal Reserve should consider more the downside risks to employment objectives in its future policymaking.

Regarding potential inflation risks, Bowman stated that due to the expectation of more idle production capacity this year, she believes the price increases that tariffs may bring will be limited. This judgment sharply contrasts with her heightened concern about inflation risks last year, reflecting her dynamic adjustment in assessing the economic situation.

Bowman's remarks reflect the latest views within the Federal Reserve regarding the economic outlook, suggesting potential signals of a shift in monetary policy. This could have far-reaching implications for both financial markets and the real economy, warranting ongoing attention.