{"id":132730,"date":"2025-08-09T21:42:09","date_gmt":"2025-08-09T21:42:09","guid":{"rendered":"https:\/\/www.europesays.com\/us\/132730\/"},"modified":"2025-08-09T21:42:09","modified_gmt":"2025-08-09T21:42:09","slug":"a-top-federal-reserve-official-says-dour-jobs-data-backs-the-case-for-3-rate-cuts","status":"publish","type":"post","link":"https:\/\/www.europesays.com\/us\/132730\/","title":{"rendered":"A top Federal Reserve official says dour jobs data backs the case for 3 rate cuts"},"content":{"rendered":"

NEW YORK \u2014 A top official at the Federal Reserve said Saturday that this month\u2019s stunning, weaker-than-expected report on the U.S. job market<\/a> is strengthening her belief that interest rates should be lower.<\/p>\n

Michelle Bowman was one of two Fed officials who voted a week and a half ago in favor of cutting interest rates. Such a move could help boost the economy by making it cheaper for people to borrow money to buy a house<\/a> or a car, but it could also threaten to push inflation<\/a> higher.<\/p>\n

Bowman and a fellow dissenter lost out after nine other Fed officials voted to keep interest rates steady<\/a>, as the Fed has been doing all year. The Fed\u2019s chair, Jerome Powell, has been adamant that he wants to wait for more data about how President Donald Trump\u2019s tariffs<\/a> are affecting inflation before the Fed makes its next move.<\/p>\n

At a speech during a bankers\u2019 conference in Colorado on Saturday, Bowman said that \u201cthe latest labor market data reinforce my view\u201d that the Fed should cut interest rates three times this year. The Fed has only three meetings left on the schedule in 2025.<\/p>\n

The jobs report that arrived last week, only a couple of days after the Fed voted on interest rates, showed that employers hired far fewer workers last month than economists expected. It also said that hiring in prior months was much lower than initially thought.<\/p>\n

On inflation, meanwhile, Bowman said she is getting more confident that Trump\u2019s tariffs \u201cwill not present a persistent shock to inflation\u201d and sees it moving closer to the Fed\u2019s 2% target. Inflation has come down substantially since hitting a peak above 9% after the pandemic, but it has been stubbornly remaining above 2%.<\/p>\n

The Fed\u2019s job is to keep the job market strong, while keeping a lid on inflation. Its challenge is that it has one main tool to affect both those areas, and helping one by moving interest rates up or down often means hurting the other.<\/p>\n

A fear is that Trump\u2019s tariffs could box in the Federal Reserve by sticking the economy in a worst-case scenario called \u201cstagflation,\u201d where the economy stagnates but inflation is high. The Fed has no good tool to fix that, and it would likely have to prioritize either the job market or inflation before helping the other.<\/p>\n

On Wall Street, expectations are that the Fed will have to cut interest rates at its next meeting in September after the U.S. jobs report came in so much below economists\u2019 expectations.<\/p>\n

Trump has been calling angrily for lower interest rates, often personally insulting Powell<\/a> while doing so. He has the opportunity to add another person to the Fed\u2019s board<\/a> of governors after an appointee of former President Joe Biden<\/a> stepped down recently.<\/p>\n","protected":false},"excerpt":{"rendered":"NEW YORK \u2014 A top official at the Federal Reserve said Saturday that this month\u2019s stunning, weaker-than-expected report…\n","protected":false},"author":3,"featured_media":132731,"comment_status":"","ping_status":"","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[12],"tags":[64,79,67,132,68],"class_list":{"0":"post-132730","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy","8":"tag-business","9":"tag-economy","10":"tag-united-states","11":"tag-unitedstates","12":"tag-us"},"share_on_mastodon":{"url":"https:\/\/pubeurope.com\/@us\/115000989778917719","error":""},"_links":{"self":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/132730","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/comments?post=132730"}],"version-history":[{"count":0,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/posts\/132730\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media\/132731"}],"wp:attachment":[{"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/media?parent=132730"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/categories?post=132730"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.europesays.com\/us\/wp-json\/wp\/v2\/tags?post=132730"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}