Federal Reserve Vice Chair Michelle Bowman warns of a fragile job market, signaling potential interest rate cuts if conditions worsen. She stresses the need for flexibility in monetary policy to respond to changing economic conditions, with a focus on stabilizing the labor market and inflation pressures.

While predicting solid economic expansion, Bowman acknowledges risks to achieving Fed mandates. She notes that price pressures may ease due to trade tariff impacts, but stresses the fragility of the job market. Bowman emphasizes the importance of being nimble and forward-looking in monetary policy decisions.

Fed officials anticipate a moderation in inflation, stable job market, and improved economic growth in 2026. Recent rate cuts aim to support employment while addressing inflation concerns. Officials remain cautious, signaling no immediate need for further rate adjustments as they monitor economic data.

As the Fed faces pressure from President Trump to lower rates, tensions escalate over the administration’s criminal targeting of the central bank. Fed Chair Jerome Powell defends the Fed’s independence in rate-setting decisions. The battle between the president and the Fed intensifies amid ongoing policy disagreements.

Read more at Yahoo Finance: Bowman says Fed should be ready to cut rates again amid job market risks