Dour Jobs officials support the case for 3 price discounts

A senior federal reserve official said on Saturday that this month is amazing, A weaker report expected on the labor market in the United States Its belief that interest rates should be less.

Michelle Bowman was one of two federal reserve officials who voted a week and a half ago in favor of reducing interest rates. Such a step can help enhance the economy by making it Cheapest people to borrow money to buy a house Or a car, but it may also threaten to pay Economic inflation higher.

Buman lost and the colleague of the dissident lost The vote of nine other officials in the Federal Reserve to maintain fixed interest ratesThe Federal Reserve was also working throughout the year. The Federal Reserve Chair, Jerome Powell, was determined that he wanted to wait for more data on how President Donald Trump’s tariff It affects inflation before the Federal Reserve in its next step.

In a speech during the Colorado Banking Conference on Saturday, Bowman said that “the latest labor market data enhances my point of view” that the Federal Reserve should reduce interest rates three times this year. The Federal Reserve contains only three meetings in the schedule in 2025.

The job report, which arrived last week, just two days after the Federal Reserve voted on interest rates, showed that employers rented a much lower number of workers last month than economists. He also said that employment in the previous months was much lower than he initially believed.

Upon inflation, at the same time, Bowman said it is getting more confident that Trump’s tariff “will not make a continuous shock to inflation” and believes that she is approaching the goal of the Federal Reserve by 2 %. Inflation has decreased significantly since the peak is above 9 % after the epidemic, but it remained stubbornly than 2 %.

The Federal Reserve function is to maintain the strength of the labor market, while maintaining a cover on inflation. The challenge it faces is that it has one main tool to influence both fields, and one help by moving interest rates up or down often means harming the other.

Fear is that Trump’s tariff can be connected in the federal reserve by adhering to the economy in the worst scenario of cases called “recession”, where the economy runs but inflation is high. The Federal Reserve does not have a good tool to repair it, and it is likely to give priority to the labor market or inflation before helping the other.

In Wall Street, expectations are that the Federal Reserve will have to reduce interest rates at its next meeting in September after the US job report came much lower than economists’ expectations.

Trump was angrily calling for low interest rates, often that Personally, Powell insult While doing this. He has the opportunity to Add another person to the Federal Reserve From the conservatives yet The appointed for former President Joe Biden Recently.