Federal Reserve Governor Michelle Bowman voted against the Fed's 50 basis point interest rate cut on Wednesday, becoming the first official since 2005 to vote against a Fed interest rate decision.
Bowman was the only Fed governor to stand apart from the 11 other voting governors in voting for a half-percentage point cut in the Fed's interest rate, the central bank's first rate cut after a nearly two-and-a-half-year battle to eradicate inflation during the COVID-19 pandemic.
Bowman said she wants to cut rates by a quarter of a percentage point, and she has expressed concern in the past that the fight against inflation isn't completely over. Associated Press Reported.
Federal Reserve Board members oppose It was more common before 1995On the other hand, in recent years, Fed chairs have often been successful in building consensus among policymakers on policy decisions and avoiding public opposition.
The new federal funds rate, at 4.75% to 5%, is the Fed's clearest signal yet that its fight against inflation is nearing an end. The pandemic has had a ripple effect on the economy, shuttering stores, disrupting supply chains and putting millions of Americans out of work.
Federal Reserve Chairman Jerome Powell said Wednesday that the Fed has not yet declared complete victory over inflation, but is closer than before.
“Now is the time for us to [interest rate] “We will shift policy to be more appropriate as inflation evolves,” Powell said at a news conference. “I'm not saying 'mission accomplished,' but I have to say I'm encouraged by the progress we've made so far.”
Bowman Joined the Federal Reserve Board She was appointed by former President Trump in 2018. Prior to her appointment, she served as Kansas' State Bank Commissioner from January 2017 to November 2018 and was vice president of Farmers & Drovers Bank of Kansas from 2010 to 2017.
