Two Fed Officials Urge Rate Cut
(MENAFN) Two Federal Reserve officials, Michelle Bowman, vice chair for Supervision, and Christopher Waller, a board representative, pointed to increasing apprehensions about the job market as their rationale for endorsing a reduction in interest rates during this week's assembly.
In a Friday release from the Federal Reserve, both Bowman and Waller shared individual remarks clarifying why they disagreed with the central bank’s choice to maintain the current interest rate during the Federal Open Market Committee (FOMC) gathering on July 29–30.
Bowman remarked that, considering the moderation in economic momentum this year and indications of a softening employment environment, it is sensible to start progressively adjusting monetary policy from its mildly limiting position toward a more neutral posture.
She argued that this move would serve as a preventive safeguard against any further economic deceleration and possible harm to the workforce.
"I see the risk that a delay in taking action could result in a deterioration in the labor market and a further slowing in economic growth," she said.
She also noted that inflation is nearing its goals, especially when "temporary tariff-related effects" are excluded, and that the job sector is functioning close to its full capacity.
Waller, a fellow board participant, acknowledged the merit of his FOMC colleagues' "wait and see" strategy for evaluating tariff effects on inflation, yet described it as excessively prudent, lacking in risk balance, and potentially leaving monetary measures trailing behind.
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