Fed's Bowman: Worried Fed is behind curve on labor market weakness
Federal Reserve (Fed) Governor Michelle Bowman said on Tuesday that she supported the quarter-point interest rate cut and added that now it's important for the Fed to proactively support the job market, according to Reuters.
Key takeaways
"Worried the Fed is behind the curve on labor market weakness, policy may need to adjust faster if risks materialize."
"Important that recent statement included a forward-looking view for further cuts."
"Expect last week's cut a first step towards a more neutral rate if economy evolves as expected."
"If demand conditions do not improve, businesses may begin laying off workers."
"Tariff impact on inflation will fade, inflation is otherwise near target."
"Labor market could deteriorate fast in coming months."
"Concerned housing weakness could lead to accelerating drop in values."
"Will need faster cuts if job market continues worsening."
Source : Fxstreet.com
