Lone Fed dissenter worried bigger rate cut would send signal of 'economic fragility'

Published On Sep 24, 2024, 9:23 AM

Federal Reserve Governor Michelle Bowman expressed her dissent against a recent 50 basis point interest rate cut, warning that such a move could signal underlying economic fragility. She believes a smaller cut of 25 basis points would have been more appropriate, given the current economic indicators show no significant weakness. Bowman is also concerned that aggressive cuts could lead to inflation and pent-up demand risks due to the still strong job market and other economic factors.