In a recent speech, Bowman expressed her support for lowering interest rates to bring the policy closer to neutral, prioritizing labor market stability over inflation concerns. Unlike Fed Chair Powell, who is cautious about rate cuts without seeing significant layoffs, Bowman believes the Fed should act swiftly given that inflation pressures remain contained. This shift in focus is reflected in the market's reaction to her comments, suggesting that labor market conditions play a crucial role in setting monetary policy moving forward.
Bowman emphasized the importance of addressing the labor market and expressed support for lowering the policy rate to achieve a neutral setting, indicating her proactive stance.
Bowman’s comments contrast sharply with Fed Chair Powell’s stance on rate cuts, highlighting the split in focus between labor and inflation among Fed officials.
Collection
[
|
...
]