By Michael S. Derby
NEW YORK, March 20 (Reuters) – Federal Reserve Vice Chair for Supervision Michelle Bowman said on Friday she’s notably more in the way of interest rate cuts relative to her colleagues.
“I’m still concerned about…the job market,” Bowman said in an interview on the FOX Business Network’s “Mornings with Maria.” “I’ve written three cuts in for, before the end of 2026 to hopefully support the labor market,” she said.
Bowman’s decidedly dovish outlook on monetary policy stands in contrast with others at the central bank. At this week’s Federal Open Market Committee meeting officials maintained their current federal funds target rate range setting at 3.5% to 3.75% amid the considerable uncertainty created by the Iran war. Officials penciled in a single cut this year and one more next year.
As for the implications of the war, “I think it’s too early to tell what the longer-term imprint will be on U.S. economic activity, and how we should think about that in terms of our longer-term economic forecast, and how we should think about that in terms of our FOMC meetings and any rate changes that we might make as a result of economic evolution coming forward,” Bowman said.
(Reporting by Michael S. Derby; Editing by Chizu Nomiyama)
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