Fed Governor Bowman explains dissent on rate vote, says she's worried about inflation

Published On Sep 24, 2024, 9:00 AM

Federal Reserve Governor Michelle Bowman expressed concerns about the recent decision to cut interest rates by half a percentage point, arguing that it could send the wrong signals about inflation and the economy's health. Bowman was the only dissenting voice in the vote, highlighting risks of premature optimism about controlling inflation, given that inflation remains above the Fed's 2% target. She suggested that a more cautious approach would better support the Fed's goals of price stability and employment in the long term.