Federal Reserve Governor Michelle Bowman said Tuesday she thought her colleagues should have taken a more measured approach to last week's half percentage point interest rate cut as she worries that inflation could reignite.
In explaining her rationale, Bowman said the half percentage point, or 50 basis point, reduction posed a number of risks to the Fed's twin goals of achieving low inflation and full employment.
Though Bowman favored a reduction, she preferred the Fed lower by a quarter percentage point, more in line with the traditional moves at the central bank.
In recent statements, Fed officials have cited easing inflation and a softening labor market as justification for the cut.
At last week's meeting, individual policymakers indicated they expect another half percentage point in cuts this year and another full point in 2025.
Persons:
Michelle Bowman, Bowman
Organizations:
Federal
Locations:
Kentucky