Fed Official Calls for Three Rate Cuts After Weak Jobs Data

A top Federal Reserve official argues that this month’s weaker jobs data strengthens the case for lower rates.

Fed Official Calls for Three Rate Cuts After Weak Jobs Data

Michelle Bowman, a top Federal Reserve official, said this month’s weak U.S. jobs report supports her view that rates should be lower. Bowman and one other dissenter voted for rate cuts at a recent meeting, while most officials kept policy steady. Fed chair Jerome Powell has urged waiting for more data on how tariffs affect inflation. The jobs data showed far fewer hires than economists expected, with revisions also lowering earlier months’ hiring. Bowman argued that the Fed should cut rates three times this year, noting the remaining meetings are few.

Bowman’s stance reveals a shift inside a policy framework that has mostly held rates steady this year. If weak data keep mounting, the idea of multiple cuts gains traction, but the risk is that inflation could accelerate if price pressures reemerge. The tariffs issue adds a political layer to the inflation outlook, testing the Fed’s independence and credibility. The episode underlines how central banks must balance helping the job market with keeping inflation in check, a task made harder by a volatile trade environment.

Highlights

Policy moves will depend on incoming data and global trade dynamics.