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Fed official Bowman signals a rate cut: If inflation is under control, a cut may occur in July.
Michelle Bowman, a member of the Federal Reserve Board of Governors, stated on Monday that she would support initiating interest rate cuts at the July policy meeting as long as inflationary pressures remain moderate. This statement is seen as the latest dovish stance regarding the current economic environment and policy direction, and further signals a possible consensus within the Federal Reserve on a loosening of monetary policy.
Inflationary pressure eases, Bowman releases dovish stance on interest rate cuts.
During a speech in Prague, Czech Republic, Bowman pointed out that if inflationary pressures in the U.S. economy remain subdued, she would support taking action to lower the benchmark interest rate as soon as the next meeting. She emphasized, "If inflationary pressures remain moderate, I would support a rate cut in our next meeting to bring the policy rate closer to neutral levels and maintain a healthy labor market." This is the first time in recent months that Bowman has publicly expressed support for a rate cut, providing the market with more clues about the internal policy leanings of the Federal Reserve.
The impact of Trump's tariffs is moderate, creating space for loose monetary policy.
Bowman also specifically mentioned U.S. President Donald Trump's recent foreign trade policies, including measures such as tariff increases. She believes that the impact of these tariffs on prices may only be temporary and limited, and is unlikely to exert significant pressure on inflation.
Her views echo those of another Federal Reserve Board of Governors member, Christopher Waller, who stated last week. Waller also mentioned in an interview that he believes the Federal Reserve has the opportunity to consider a rate cut at the July meeting.
The Federal Reserve shifts to easing, market expectations heat up.
As officials from the Federal Reserve Board of Governors gradually release dovish signals, the market's expectations for a policy shift in July are also heating up. Bowman pointed out that she will continue to closely monitor economic trends, government policy changes, and financial market movements to ensure that the Federal Reserve's decisions can respond to the latest developments.
The Federal Reserve is trying to strike a balance between avoiding economic overheating and supporting growth. If inflation data continues to be sluggish, monetary policy may be further eased in the coming months.
This article signals a rate cut from Fed official Bowman: If inflation is under control, a cut may occur as early as July, first appeared in Chain News ABMedia.