Fed Board Member Michelle W. Bowman Argues 0.5% September Cut Was a Mistake’
Andrew is a journalist and content writer with a passion for Bitcoin. His work has been featured with Cryptonews, Decrypt, CryptoPotato, and Bitcoin Magazine, among others.
Federal Reserve Board Member Michelle W. Bowman criticized the central bank’s decision to cut the federal funds rate by 50 basis points earlier this September, expressing concerns during a speech on Monday at the Georgia Bankers Association President/CEO Conference in Charleston, South Carolina.
Bowman warned that the sharp rate cut might signal the Fed’s unease over the economy, potentially sparking fears of an impending recession.
The aggressive rate reduction, which many interpreted as bullish for assets like Bitcoin, raised alarms for Bowman.
She argued that the move could be seen as the Fed reacting prematurely to protect the economy, rather than signaling strength.
“I was concerned that reducing the target range for the federal funds rate by 1/2 percentage point could be interpreted as a signal that the Committee sees some fragility or greater downside risks to the economy,” Bowman said at the conference..
She noted that the economy still shows “no clear signs of material weakening or fragility,” and that a more moderate 25 basis point cut would have better reflected confidence in the central bank’s progress toward its dual mandate.
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