Fed Governor Bowman favors July interest rate cut if inflation stays low

Federal Reserve Governor Michelle Bowman said Monday that she would favor an interest rate cut at the next policy meeting in July so long as inflation pressures stay muted.

In remarks for a speech in Prague, Bowman became the second central banker in recent days to suggest that President Donald Trump’s tariffs are likely to have a temporary and muted impact on prices, thus paving the way for lower rates.

“Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labor market,” she said in prepared remarks. “In the meantime, I will continue to carefully monitor economic conditions as the Administration’s policies, the economy, and financial markets continue to evolve.”

Bowman’s comments are similar to those from fellow Governor Christopher Waller, who told CNBC on Friday that he also thinks the Fed could consider cutting in July.

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