Federal Reserve Governor Michelle Bowman still sees three interest rates in 2025

Federal Reserve Governor Michel Bowman said in a speech during the weekend that she still sees three interest rates this year after the Federal Reserve Monetary Policy Committee left rates unchanged in their meeting in late July.

Bowman, who held the position of Vice President of the Federal Reserve for Supervision, spoke on Saturday in the Banker Association in Kansas 2025, and the top management summit in Colorado Springs, Colorado, as it reaffirmed the reason for its creativity from the recent interest decision at the Federal Reserve last month and exposed the low prices.

Bowman and her colleague, the governor of the Federal Reserve Bank Christopher Waller, each of them is opposed to the FOOC Open Market Committee (FOM) to leave the Federal Federal Money rate of the Central Bank in the range of 4.25 % to 4.5 %.

It was the first opposition by two FOMC members in favor of a rate reduction since 1993.

Bowman explained that at the FOMC meeting in June and in a later speech, she was putting her thinking in July based on her evaluation of “signs of fragility in the conditions of the labor market,” adding that, “adding,”Economic conditions It seems that it turns, as a result, we must reflect this shift in our political decisions. “

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“The inflation has approached our goal, after excluding the temporary effects of definitions, and the labor market remained near the full workers,” Bowman explained. She added: “Taking action at a meeting last week would have been proactive against the risk of additional erosion in the conditions of the labor market and weakening more economic activity.”

the Job report in July It was weaker than expected with the addition of 73,000 jobs – less than 110,000 estimated LSEG economies – as well as revised labor in May and June to 258,000 jobs. Bowman noted that despite the signs of weakness in the labor market, the labor market “still” is still approaching the full employment estimates. “

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Bowman said the monthly labor market data “has become increasingly difficult to explain, partly, which reflects the low response rates of survey, immigration dynamics and net business.”

She wrote: “It is very important that the US official data is accurately captured periodic or structural changes in the labor market in an actual time so that we can rely confidently on this data in order to make monetary and economic policies.”

“Therefore, I am still cautious about taking a lot of data data, but I see the latest news about economic growth, the labor market and inflation in line with greater risks on the employment side in our double mandate.”

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Bowman explained that she continues to offer three interest rates before the end of 2025 as she expected since last December, which means three discounts at 25 Basis points in the upcoming FOMC meetings. However, she emphasized that monetary policy is not on a pre -determined path and can develop as economic conditions change.

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Bowman also said before Next FOMC meeting In mid -September, federal policy makers will receive two inflation reports and another employment report to give them more economic data for consideration.

Bowman said: “The proactive approach to transferring policy is closer to a neutral, than its current moderate bound position, which would help avoid unnecessary corrosion in the conditions of the labor market and reduce the opportunity for the committee to need to implement a greater political correction in the event of more deteriorating the labor market.”