Fed’s Bowman Advocates Aggressive Rate Cuts to Stabilize Labor Market

Federal Reserve Vice Chair Michelle Bowman has issued a stark warning about deteriorating labor market conditions, urging immediate monetary policy action. Speaking at the Forecasters Club of New York, Bowman cited concerning data showing weakening employment trends alongside persistent inflation.

The policymaker emphasized the Federal Open Market Committee risks falling behind the curve if it doesn't act decisively. "We may already be lagging in responding to escalating labor market concerns," Bowman cautioned, suggesting more rapid and substantial rate adjustments may become necessary.

This dovish stance follows August's 25 basis point cut, which brought the target range to 4%-4.25%. The MOVE represented an early effort to support employment, though Bowman's comments suggest more aggressive intervention may be forthcoming.