Fed dissenter Bowman preferred smaller rate cut because 'we have not yet achieved our inflation goal'

Published On Sep 20, 2024, 1:51 PM

Federal Reserve Governor Michelle Bowman expressed dissent against the recent half-point interest rate cut, advocating for a smaller 0.25% reduction instead. She argued that inflation has not reached the central bank's target of 2%, and a cautious approach towards rate adjustments would help maintain price stability without igniting excessive demand. While acknowledging a strong U.S. economy with solid growth and low layoffs, she warned that larger cuts could indicate a premature victory over inflation. This split within the Fed highlights varying opinions on future rate cuts, with some officials favoring more substantial reductions and others pushing for a more measured approach.