Fed’s Bowman calls for rate cut ‘as soon as’ July, cites mild inflation

Federal Reserve

Federal Reserve Vice Chairman for Financial Supervision Michelle Bowman called for an interest rate cut “as soon as” in July so long as inflation pressures stay muted.

“Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labor market,” she said today, June 23, in prepared remarks for a speech in Prague.

“In the meantime, I will continue to carefully monitor economic conditions as the Administration’s policies, the economy, and financial markets continue to evolve.”

Bowman is the second central banker to suggest in recent days a possibility for lower rates. Fed Governor Christopher Waller told CNBC on Friday that he also thinks the Fed could consider slashing rates in July.