The Federal Reserve Board of Governors Bowman hinted at supporting a rate cut in July, following employment risks.

[Coin World][The Federal Reserve Board of Governors Bowman hints: may support a rate cut in July] The Federal Reserve Board of Governors Bowman stated: “If inflationary pressures are under control, I would support lowering the policy interest rate as soon as possible 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 since last year. She mentioned that due to expected more idle capacity in the economy this year, she believes that the price increases brought by tariffs will be “mild and one-off.” 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 dynamism, slowing economic growth, and narrow concentrations of job growth, thus believing that the Federal Reserve should “pay more attention to the downside risks to the employment goals” in future decisions. This is the first substantial comment on the economic outlook from Bowman since she was nominated by Trump and confirmed by the Senate to serve as the Vice Chair for Supervision of the Federal Reserve this spring.