The Federal Reserve Governor Bowman: The cooling of the labor market has been exaggerated, and I remain cautious about rate cuts.
On August 11, Federal Reserve Governor Bowman stated that inflation remains "uncomfortably" above the target level. There are upside risks to inflation, and the labor market remains strong, indicating that she may not be prepared to support a rate cut at the next meeting of U.S. central bank officials in September. She said that the progress made in reducing inflation in May and June is welcome, but inflation is still above the committee's 2% target, which is concerning, and I will remain cautious when considering adjusting the current policy stance. She also stated that U.S. fiscal policy, immigration pressures on the real estate market, and geopolitical risks could put upward pressure on house prices, and the recent jump in the unemployment rate to 4.3% may have exaggerated the extent of the cooling in the labor market.
