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Bowman Urges Three Rate Cuts as Jobs Growth Falters

She drew on rising unemployment alongside sharply slower hiring to support easing, predicting that tariffs will not sustain inflation.

Overview

  • Bowman highlighted the July jobs report showing unemployment rising to 4.2% and average monthly hiring slowing to 35,000 as evidence of labor market fragility.
  • She was one of two governors who dissented at June’s Fed meeting by voting to cut rates instead of maintaining the 4.25%–4.50% target range.
  • The vice chair reaffirmed her forecast of three federal funds rate reductions this year to preempt further economic weakening.
  • Most Fed officials remain hesitant to cut rates due to concerns that President Trump’s tariffs could disrupt the Fed’s progress toward a 2% inflation goal.
  • President Trump denounced the recent employment figures as “rigged” and dismissed the Bureau of Labor Statistics commissioner soon after the report’s release.