Federal Reserve Governor Disputes Interest Rate Decision

Federal Reserve Governor Michelle Bowman has expressed concerns regarding the central bank's recent interest rate decision, after voting against a 50 basis points rate cut. Instead, Bowman had advocated for a smaller cut of 25 basis points, believing that the Federal Reserve’s inflation targets have not yet been achieved. In a statement, Bowman emphasized that she sees the risk that the committee's more extensive policy action could be interpreted as a premature declaration of victory regarding the price stability mandate. The decision to cut interest rates was the first of its kind in four years and took place on Wednesday.