Reported 14 days ago
Federal Reserve governor Michelle Bowman expressed her concerns regarding the recent decision to cut interest rates by 50 basis points, arguing that such a significant reduction could signal economic fragility. She believes a more modest 25 basis point cut would be prudent, as rapid rate decreases may lead markets to expect similar future cuts while risking inflation due to unleashed pent-up demand. Despite other Fed leaders supporting the larger cut based on inflation trends and labor market conditions, Bowman remains cautious, emphasizing the risks of sustaining price stability amid high inflation and a robust job market.
Source: YAHOO