The Federal Reserve Board of Governors Bowman: If inflation is under control, it will support interest rate cuts and follow the risks of employment downturn.

[Block Rhythm] On June 23, The Federal Reserve Board of Governors member Bowman stated: “If inflationary pressures are brought under control, I would support a rapid drop in the policy interest rate at the next meeting to bring it closer to neutral levels and maintain a healthy labor market.” Bowman has been very concerned about inflation risks over the past year.

She said that due to the expectation of more idle capacity in the economy this year, she believes that the price increases brought by tariffs will be “moderate and one-time.” She described the labor market as solid and expects it to be close to full employment levels.

But she also cited evidence of vulnerability, including weakened labor market vitality, slowing economic growth, and a narrow concentration of job growth, and therefore believes that the Federal Reserve should “pay more attention to the downside risks facing the employment goal” in future decisions. This is the first substantive comment on the economic outlook from Bowman since being nominated by Trump and confirmed by the Senate as the Vice Chair for Supervision of the Federal Reserve this spring.