Fed’s Bowman says she's penciled in 3 rate cuts before the end of 2026
Fox Business • • business
Key Points:
- Federal Reserve Vice Chair for Supervision Michelle Bowman anticipates multiple interest rate cuts before the end of 2026 to support the labor market, despite concerns about job market recovery.
- Bowman expects strong economic growth this year, aligning with the Fed's recent decision to hold interest rates steady at 3.5% to 3.75% after three cuts late last year.
- The Federal Open Market Committee's median projection foresees only one 25 basis point rate cut this year and another in 2027, reflecting cautious optimism amid inflation and labor market dynamics.
- Fed Chair Jerome Powell highlighted that inflation progress is expected to be gradual, aided by easing tariff inflation, but acknowledged uncertainty regarding the economic impact of the ongoing Iran conflict.
