Federal Reserve governor Michelle Bowman indicated support for cutting the central bank's key interest rate as early as July, citing minimal inflation impact from tariffs despite criticism from the White House. She stressed that if inflation remains under control, lower borrowing costs could be on the table soon. This viewpoint contrasts with Fed Chair Jerome Powell's more cautious approach, showcasing tensions within the bank amid political pressures from President Trump, who has publicly criticized Powell for not acting sooner on rate cuts.
Bowman stated that the impact of tariffs on inflation may be delayed and less severe than expected, supporting a rate cut if inflation remains contained.
The comments illustrate divisions within the Fed, contrasting Bowman's and Waller's calls for an immediate rate cut with Powell's cautious approach amidst political pressures.
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