Governor of the Federal Reserve Michelle Bowman Has expressed her support for a potential interest rate reduction in July, provided that inflation remains modest.
What happened: Bowman, during a speech in Prague, suggested that an interest rate would be appropriate during the coming July meeting if the inflatory pressure remains low, reported CNBC on Monday.
“If the inflation pressure continues, I would support in reducing the policy percentage as soon as our next meeting to bring it closer to the neutral environment and to maintain a healthy labor market,” Bowman said.
Bowman’s vision is in line with that of colleague -governor Christopher Wallerwho were also in July with a possible cut. Both governors are of the opinion that the effect of president Donald TrumpThe rates for prices will be temporary and muted, creating a favorable environment for lower rates.
“I think it is likely that the impact of rates on inflation can take longer, be more delayed and can have a smaller effect than initially expected, especially because many companies have loaded their supplies,” said the Fed Governor.
Although Bowman did not specify the size of the speed reduction she supports, Waller has stated that drastic cuts are not necessary at the moment. The next meeting of the FOMC is planned for July 29-30.
Why it matters: The inflation objective of 2% of the Federal Reserve has been a topic of debate, in which Rep. Ro Khanna (D-CA) questioned his holiness. The FED decision to maintain its bench market rate at 4.25% -4.50% for a sixth consecutive meeting has left the loan costs and depon your payments near the current level in the economy. This is amidst the editing of the pressure of the White House for speed reductions.
Sen. Elizabeth Warren (D-Massa.) President criticized Trump’s rate Policy, which claims that they prevent the Federal Reserve from providing the lower interest rates that Americans need.
In the meantime, Federal Reserve chairman Jerome Powell’s half -yearly appearance is starting Tuesday while he supplies the Monetary Policy Report of the Federal Reserve to the House Financial Services Committee, followed by the Senate Bank Committee on Wednesday.
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Indemnification: This content was partially produced with the help of AI tools and was assessed and published by Benzinga Editors.
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