Latest Breaking News

BumRushDaShow

(159,209 posts) Sun Aug 10, 2025, 04:03 AM Aug 10

Fed Governor Bowman says weak jobs report backs her view for 3 rate cuts this year

Source: Fortune/AP

August 9, 2025 at 5:16 PM EDT

A top official at the Federal Reserve said Saturday that this month’s stunning, weaker-than-expected report on the U.S. job market is strengthening her belief that interest rates should be lower.

Michelle Bowman was one of two Fed officials who voted a week and a half ago in favor of cutting interest rates. Such a move could help boost the economy by making it cheaper for people to borrow money to buy a house or a car, but it could also threaten to push inflation higher.

Bowman and a fellow dissenter lost out after nine other Fed officials voted to keep interest rates steady, as the Fed has been doing all year. The Fed’s chair, Jerome Powell, has been adamant that he wants to wait for more data about how President Donald Trump’s tariffs are affecting inflation before the Fed makes its next move.

At a speech during a bankers’ conference in Colorado on Saturday, Bowman said that “the latest labor market data reinforce my view” that the Fed should cut interest rates three times this year. The Fed has only three meetings left on the schedule in 2025. The jobs report that arrived last week, only a couple of days after the Fed voted on interest rates, showed that employers hired far fewer workers last month than economists expected. It also said that hiring in prior months was much lower than initially thought.

Read more: https://fortune.com/2025/08/09/fed-rate-cuts-outlook-michelle-bowman-jobs-report-inflation-tariffs/

9 replies

= new reply since forum marked as read

Highlight:

Fed Governor Bowman says weak jobs report backs her view for 3 rate cuts this year (Original Post) BumRushDaShow Aug 10 OP

Nine said no Aviation Pro Aug 10 #1

Angling for the chair... Hugin Aug 10 #2

But according to Trump, the poor jobs report was fake. Doodley Aug 10 #3

Beat me to it! Chasstev365 Aug 10 #4

Schrodinger's Job Report IbogaProject Aug 10 #9

According to CME Fedwatch, a plurality of interest rate traders expect three rate cuts this year progree Aug 10 #5

Let's cut the rate so housing prices can go even higher mdbl Aug 10 #6

Interest rates are not going to increase home sales Nigrum Cattus Aug 10 #7

A trump sucker upper. republianmushroom Aug 10 #8

Aviation Pro

(14,695 posts)

1. Nine said no

Reply to BumRushDaShow (Original post)

Sun Aug 10, 2025, 04:22 AM

Aug 10

No rate cut this year, you fucking pedophile.

Hugin

(36,834 posts)

2. Angling for the chair...

Reply to BumRushDaShow (Original post)

Sun Aug 10, 2025, 06:02 AM

Aug 10

Some people have no shame.

Doodley

(11,274 posts)

3. But according to Trump, the poor jobs report was fake.

Reply to BumRushDaShow (Original post)

Sun Aug 10, 2025, 06:29 AM

Aug 10

Chasstev365

(6,127 posts)

4. Beat me to it!

Reply to Doodley (Reply #3)

Sun Aug 10, 2025, 07:11 AM

Aug 10

IbogaProject

(4,879 posts)

9. Schrodinger's Job Report

Reply to Doodley (Reply #3)

Sun Aug 10, 2025, 12:49 PM

Aug 10

It is simultaneously both fake and important to heed depending on the context you look at it from.

https://en.wikipedia.org/wiki/Schr%C3%B6dinger%27s_cat

progree

(12,258 posts)

5. According to CME Fedwatch, a plurality of interest rate traders expect three rate cuts this year

Reply to BumRushDaShow (Original post)

Sun Aug 10, 2025, 07:32 AM

Aug 10

https://www.cmegroup.com/markets/interest-rates/cme-fedwatch-tool.html

There are three remaining meetings in 2025: 9/17, 10/29, and 12/10

At the end of the 12/10 meeting:
0.7% expect the rate to be at the current level, 425-450
10.3% expect the rate to be lower by 0.25%
42.3% expect the rate to be lower by 0.50%
46.7% expect the rate to be lower by 0.75%

==========================

By the way, the last dot plot was in the June 2025 meeting, long before the woeful jobs report, and long before Adrianna Kugler's resignation. It showed FOMC officials' expected number of rate cuts to be two in 2025 (that was their median projection).

Nine officials said no to a rate cut at the last meeting (July 30-31). But that's not the same as a "no" to rate cuts later in the year.

BTW, they did not produce a dot plot at the July meeting. It's something they do only quarterly.

ETA - Oh, next Tuesday the CPI report comes out for July. There are quite a number of inflation reports (CPI, PPI wholesale prices, and PCE) before the next FOMC meetings, as well as jobs reports (first Friday of each month). Amongst many other jobs and economic reports. So all projections of what the Fed might do are very much subject to changes.