Latest news with #2025CEO&SeniorManagementSummit
Arab Times
3 days ago
- Business
- Arab Times
Fed official says weak jobs data backs 3 rate cuts this year
WASHINGTON, Aug, 10 (Xinhua): Fed Vice Chair for Supervision Michelle Bowman said Saturday that tepid US jobs data reinforced her view that three interest rate cuts would likely be appropriate this year. According to the Bureau of Labor Statistics, the US economy added just 73,000 jobs in July, far below market expectations. Meanwhile, the unemployment rate in July edged up to 4.2 percent from 4.1 percent in June. "A proactive approach in moving policy closer to neutral, from its current moderately restrictive stance, would help avoid a further unnecessary erosion in labor market conditions and reduce the chance that the (Federal Open Market) Committee will need to implement a larger policy correction should the labor market deteriorate further," Bowman said in a speech delivered at the Kansas Bankers Association 2025 CEO & Senior Management Summit held in Colorado. At the Fed's policy meeting in late July, the central bank kept the target range for the federal funds rate unchanged at 4.25 percent to 4.5 percent, a level that has remained steady since last December. Bowman was one of two Fed officials who dissented from the decision. Most Fed officials have been more cautious about cutting rates, citing concerns that broad-based tariffs on US trading partners could push inflation higher. The US consumer price index rose by 2.7 percent in June compared to a year earlier, the largest increase since February. However, Bowman sees tariff-related price increases as likely a "one-time effect," adding that inflation will return to the Fed's 2 percent target after these effects dissipate. "Because changes in monetary policy take time to work their way through the economy, it is appropriate to look through temporarily elevated inflation readings and therefore remove some policy restraint to avoid weakening in the labor market," she said.
Miami Herald
3 days ago
- Business
- Miami Herald
Fed Gov. Bowman wants three interest rate cuts in 2025
Aug. 9 (UPI) -- The Federal Reserve has not approved an interest rate cut since before the Nov. 5 election, but one of its governors said she wants three rate cuts this year. Federal Reserve Gov. Michelle "Miki" Bowman dissented from the Federal Open Market Committee's decision last week to maintain the current Fed rate of between 4.25% and 4.5%, she said on Saturday. She said "signs of fragility in labor market conditions" caused her to support gradually lowering the Federal Reserve's interest rate with three successive reductions, starting in July. "Economic conditions appeared to be shifting," Bowman said. "As a result, we should reflect this shift in our policy decisions." Bowman said, "Inflation has moved considerably closer to our target, after excluding temporary effects of tariffs, and the labor market has remained near full employment." "With economic growth slowing this year and signs of a less dynamic labor market becoming clear," Bowman explained, "I see it as appropriate to begin gradually moving our moderately restrictive policy stance toward a neutral setting." "Taking action at last week's meeting would have proactively hedged against the risk of a further erosion in labor market conditions and a further weakening in economic activity," she added. Bowman said the nation's economy "has been resilient" this year, but consumer spending has eased, while "residential investment" has declined. "Consumer spending on both goods and services has risen only modestly, reflecting slow gains in disposable personal income, lower levels of liquid savings and high credit card utilization," Bowman continued. She cited weakened housing demand that has reached a level that hasn't been seen since the Great Recession. "Housing activity has declined, including in single-family home construction and sales, as listings of homes for sale are growing and house prices are falling," Bowman explained. The nation's employment-to-population ratio also has declined significantly so far this year, which she said suggests labor market conditions are softening. "Payroll employment growth slowed sharply to only 35,000 jobs per month over the three months ending in July," Bowman said. "This is well below the moderate pace seen earlier in the year, likely due to a significant softening in labor demand," she added. Bowman also said President Donald Trump's tariff policies will not "present a persistent shock to inflation" because price-stability risks have eased. Bowman made her comments while addressing the Kansas Bankers Association's 2025 CEO & Senior Management Summit in Colorado Springs, Colo., on Saturday. She is one of seven Federal Reserve governors who serve 14-year terms after being nominated by the president and confirmed by the Senate. Bowman and Federal Reserve Gov. Christopher Waller both dissented when the Federal Reserve voted to maintain the current interest rates in July. It was the first time in more than three decades that two Federal Reserve governors dissented from the majority decision, according to MarketWatch. Trump appointed Bowman and Waller to the Federal Reserve in 2018 and 2020, respectively. Copyright 2025 UPI News Corporation. All Rights Reserved.
UPI
3 days ago
- Business
- UPI
Fed Gov. Bowman wants three interest rate cuts in 2025
Federal Reserve Gov. Michelle Bowman on Saturday said she would prefer three Fed rate cuts this year, which Federal Reserve Chairman Jerome Powell announced would stay unchanged while in Washington on July 30. Photo by Bonnie Cash/UPI | License Photo Aug. 9 (UPI) -- The Federal Reserve has not approved an interest rate cut since before the Nov. 5 election, but one of its governors said she wants three rate cuts this year. Federal Reserve Gov. Michelle "Miki" Bowman dissented from the Federal Open Market Committee's decision last week to maintain the current Fed rate of between 4.25% and 4.5%, she said on Saturday. She said "signs of fragility in labor market conditions" caused her to support gradually lowering the Federal Reserve's interest rate with three successive reductions, starting in July. "Economic conditions appeared to be shifting," Bowman said. "As a result, we should reflect this shift in our policy decisions." Bowman said, "Inflation has moved considerably closer to our target, after excluding temporary effects of tariffs, and the labor market has remained near full employment." "With economic growth slowing this year and signs of a less dynamic labor market becoming clear," Bowman explained, "I see it as appropriate to begin gradually moving our moderately restrictive policy stance toward a neutral setting." "Taking action at last week's meeting would have proactively hedged against the risk of a further erosion in labor market conditions and a further weakening in economic activity," she added. Bowman said the nation's economy "has been resilient" this year, but consumer spending has eased, while "residential investment" has declined. "Consumer spending on both goods and services has risen only modestly, reflecting slow gains in disposable personal income, lower levels of liquid savings and high credit card utilization," Bowman continued. She cited weakened housing demand that has reached a level that hasn't been seen since the Great Recession. "Housing activity has declined, including in single-family home construction and sales, as listings of homes for sale are growing and house prices are falling," Bowman explained. The nation's employment-to-population ratio also has declined significantly so far this year, which she said suggests labor market conditions are softening. "Payroll employment growth slowed sharply to only 35,000 jobs per month over the three months ending in July," Bowman said. "This is well below the moderate pace seen earlier in the year, likely due to a significant softening in labor demand," she added. Bowman also said President Donald Trump's tariff policies will not "present a persistent shock to inflation" because price-stability risks have eased. Bowman made her comments while addressing the Kansas Bankers Association's 2025 CEO & Senior Management Summit in Colorado Springs, Colo., on Saturday. She is one of seven Federal Reserve governors who serve 14-year terms after being nominated by the president and confirmed by the Senate. Bowman and Federal Reserve Gov. Christopher Waller both dissented when the Federal Reserve voted to maintain the current interest rates in July. It was the first time in more than three decades that two Federal Reserve governors dissented from the majority decision, according to MarketWatch. Trump appointed Bowman and Waller to the Federal Reserve in 2018 and 2020, respectively.
