Federal Reserve Governor Michelle Bowman said Monday she would support cutting interest rates at the central bank’s next policy meeting if inflation pressures remain contained—a notable shift from one of the Fed’s most hawkish voices.
Speaking in Prague, Bowman said that “inflation has cooled,” and that the White House’s new bilateral tariff policy does not appear to be fueling higher consumer prices.
Twelve weeks after the new tariff regime went into effect, Bowman noted, “retailers seem unwilling to raise prices on essential consumer items.”
“Should inflation pressures remain contained,” she said, “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.” Her remarks were released in a published text.
The Fed’s next meeting is scheduled for July 29–30.
Bowman’s comments come just days after Fed Governor Christopher Waller also said he could support a July cut. Together, the two Trump-appointed governors—both nominated during the former president’s first term—represent a growing faction inside the Fed open to easing monetary policy in the near term.
Her support is particularly significant given her stance last year. In September 2024, Bowman was the lone dissenting vote against the central bank’s half-point rate cut, saying she would have preferred a smaller move. The Fed followed that cut with two more in late 2024, but has kept rates steady in 2025.
Chair Jerome Powell, meanwhile, has taken a more cautious approach. He has claimed, without evidence, that tariffs will inevitably lead to higher prices and are likely to be a drag on growth and employment.
Other Fed officials have also urged patience, warning against moving too quickly to lower rates.
Powell was originally appointed to the Board of Governors by President Obama and elevated to Chair by President Trump in 2017.
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