The Vice President of Supervision of the Federal Reserve, Michelle Bowmansaid Saturday his Concern for the fragility of the labor market after the recent weak employment data. The official He ratified his confidence in the results of three interest rate cuts.
The Federal Reserve, the United States Central Bank, decided last month to leave The short -term indebtedness costs in the range of 4.25% – 4.50%, established in December. Bowman disagreed with this policy.
“Having taken measures at the meeting last week would have proactively protected the risk of greater erosion of labor market conditions and greater weakening of economic activity, “he said Bowman in speech for the Kansas banker association.
Bowman referred to the monthly employment report of the Department of Labor that threw 4.2% in the unemployment rate. It was not the only discouraging fact. The creation of jobs slowed dramatically in the last three months, reaching a monthly average of 35 thousand positions.
“This is well below the moderate rhythm observed at the beginning of the yearprobably due to an important decrease in labor demand, “he said Bowman.
“My summary of economic projections includes three cuts for this year, which has been consistent with my prognosis since last December, and the latest labor market data reinforces my opinion,” he added, worried.
Who is Christopher Waller, the candidate to lead the Fed instead of Jerome Powell
In full season of speculation about the future leadership of the US Federal Reserve (Fed) and Donald Trump’s request, Christopher J. Waller arises as one of the main candidates to replace Jerome Powellwhose mandate would conclude in May 2026.
At the moment, Waller occupies a place at the Board of Governors of the Federal Reserve since December 18, 2020, After a vote of the Senate that ratified it by a small margin, and its mandate would extend until January 2030.
Previously, he was Executive Vice President and Research Director of the Bank of the Federal Reserve of St. Louis, since it began in 2009.
Academically Waller had a solid tour as a professor at the University of Notre Dame and in positions at the University of Kentucky, the Indian University and as a researcher affiliated in Europe.
Its approach to monetary policy stands out for three fundamental axes. First, consider tariffs as transient inflationary clashes, which do not require permanent policy adjustments.
Second, advocates for proactive fees adjustments, anticipating economic deterioration instead of reacting to lagging data.
Finally, it favors a policy based on future projections and data, in contrast to the traditional approach dependent on current figures.
Source: Ambito
