Fed’s Michelle Bowman insists on interest rate cut in July

On Monday, Federal Reserve (Fed) official Michelle Bowman stated the need to lower interest rates during the regulator's July meeting. As Associated Press notes, the lack of unity among Fed representatives regarding rates has drawn criticism from the White House.

According to Bowman, the tariffs imposed by the administration of US President Donald Trump did not cause the inflation spike that many economists had warned about, and upcoming price changes will be temporary. Currently, inflation in the country is steadily slowing. Between April and May, the consumer price index rose by just 0.1%.

Her opinion was also supported by another high-ranking Fed representative, Christopher Waller. As he emphasized, the regulator should consider the possibility of lowering borrowing costs next month.

However, all these officials' assumptions run counter to the position of the Fed chairman, Jerome Powell. Earlier, he urged waiting for additional economic data before making a decision on interest rate cuts. Meanwhile, during the last Fed meeting, 7 out of 19 representatives supported maintaining current borrowing costs until year-end.