Fed Governor Bowman Supports Moderate Rate Cuts Amid Economic Strength

According to Odaily, Federal Reserve Governor Michelle Bowman expressed her respect and appreciation for colleagues who favor more significant rate cuts. She remains committed to collaborating with them to ensure that policies are appropriately positioned to achieve the dual mandate objectives. Bowman noted that the economy remains robust, with the labor market nearing full employment. She believes the Fed is moving at a moderate pace towards a more neutral policy stance and will ensure further progress in restoring the inflation rate to the 2% target. During the September meeting, Bowman agreed that it was appropriate to readjust the federal funds rate level. However, she showed a preference for implementing smaller rate cuts initially, expressing concerns that larger policy actions by the Fed might be prematurely interpreted as a declaration of victory against inflation.