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Federal Reserve Vice Chair Bowman recently made striking remarks that provided a boost to the financial markets. In her speech on Saturday, she indicated that the latest employment data shows signs of weakness, which deepens her concerns about the health of the labor market. Notably, Bowman explicitly expressed support for the idea of three rate cuts this year.
Bowman is one of the two board members who opposed maintaining the current high interest rate level last month. The current interest rate range is 4.25%-4.50%, which has remained unchanged since December last year. Although some officials are cautious about rate cuts, worried that tariffs may affect the achievement of inflation targets, the overall attitude has clearly shifted towards easing recently, with more and more officials beginning to publicly support rate cuts.
In her speech at the Kansas Bankers Association, Bowman emphasized the risks facing the labor market more candidly than the official statement. She pointed out that the measures taken at last week's meeting help stabilize the job market and prevent further economic decline.
Bowman's remarks convey an important signal that the Federal Reserve's policy may shift. As concerns among senior officials about the economic situation grow, the market widely believes that the Federal Reserve may begin a rate-cutting cycle later this year. This potential policy shift will undoubtedly have a profound impact on global financial markets, and investors and economists are closely monitoring the Federal Reserve's future moves.