Federal Reserve Governor Bowman hinted that he may support a rate cut in July

"If inflationary pressures are contained, I would support lowering the policy rate as soon as possible at the next meeting to bring it closer to neutral and maintain a healthy labour market," said Bowman, a Fed governor who has been very focused on inflation risks over the past year. With more spare capacity expected in the economy this year, she said she believed the price increases from tariffs would be "small and one-off". She described the labour market as solid and expected to be close to full employment. But she also cited evidence of fragility, including weaker labour market dynamism, slower economic growth and a narrow concentration of employment growth, and argued that the Fed should "give greater weight to downside risks to its employment objective" in future policymaking. This is Bowman's first substantive comment on the economic outlook since he was nominated by Trump this spring and confirmed by the Senate as the Federal Reserve's vice chairperson of supervision.