In a historic dissent, Michelle Bowman, a Fed governor, advocated instead for a smaller 25 basis point cut.
AdvertisementLeading up to the rate cut, Fed Chair Jerome Powell repeatedly emphasized the Fed's goals of maximum employment and a 2% inflation rate.
Bowman said she believes inflation could come closer to the Fed's target with more gradual easing, which would avoid a spike in demand from lower borrowing costs.
AdvertisementBowman has long advocated for tighter monetary policy to rein in inflation, skewing hawkish among the Fed's members.
"We should keep in mind the historical lessons and risks associated with prematurely declaring victory in the fight against inflation," Bowman said in a speech last year.
Persons:
—, Michelle Bowman, Bowman, Jerome Powell, Powell
Organizations:
Service, Fed, Business, New York Fed