Anticipated Federal Reserve Rate Cuts: What Lies Ahead?
Federal Reserve Governor Michelle Bowman anticipates the U.S. central bank will implement interest rate cuts at its final two policy meetings of 2025. Previously, the Fed cut its benchmark rate to 4.00%-4.25%. A majority supports further reductions due to a softening job market, with upcoming meetings in October and December.
Federal Reserve Governor Michelle Bowman expressed expectations for interest rate cuts at the U.S. central bank's remaining 2025 policy meetings. Speaking at a Washington event, she stressed the likelihood of two additional reductions by year's end, following a recent quarter-point cut to a 4.00%-4.25% range.
Bowman's outlook aligns with many policymakers who advocate for further rate cuts amid a weakening job market. As the central bank prepares for its October 28-29 meeting and a final session in December, futures markets reflect anticipation of quarter-point decreases at both gatherings.
Despite initial dissent, Bowman, alongside Fed Governor Christopher Waller, supports the recent trajectory toward rate reductions, asserting that current economic conditions, including tariffs reintroduced by President Donald Trump, won't lead to lasting inflation but rather tilt risks towards employment challenges.
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