Bowman Expects Rate Cuts Amid Weak Labor Market and Stable Inflation:

Federal Reserve Vice Chair for Supervision Michelle Bowman affirmed that the slowdown

Strengthens her expectations for the U.S. labor market’s three interest rate cuts in 2025.

Chinese data showed stable consumer prices and continued contraction in producer prices,
reflecting domestic demand pressures and a slowdown in global economic activity.

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Bowman

Consumer Prices

Bowman: Weak Labor Market Reinforces My Expectation of Three Rate Cuts This Year

Federal Reserve Vice Chair for Supervision Michelle Bowman said on Saturday

The recent weak U.S. employment data confirms her concerns about the fragility of the labor market
and strengthens her conviction that three interest rate cuts would be appropriate this year.

Bowman was one of two members of the Federal Reserve Board who dissented last month against
The decision to keep short-term interest rates in the 4.25%–4.50% range,

where they have been since last December.

In her remarks to the Kansas Bankers Association,

Bowman explained that cutting rates at the previous meeting would have been a “proactive hedge.”
Against the risks of deteriorating labor market conditions and weakening economic activity.
She added that recent Labor Department data reinforced these concerns, showing the unemployment rate rising to 4.2%,
with job gains slowing to an average of just 35,000 per month over the past three months,

reflecting a significant decline in labor demand.

Bowman stressed that her economic outlook, which includes three rate cuts in 2025,
has remained unchanged since last December, noting that the latest data supports her view.
The Federal Reserve has three meetings this year— September, October, and December.

China’s Consumer Prices Steady in July, Producer Price Contraction Persists

Data from China’s National Bureau of Statistics released Saturday showed

that consumer prices remained flat in July, compared to a slight 0.1% increase in June.
This exceeded Reuters analysts’ expectations of a 0.1% decline.

The Consumer Price Index rose 0.4% monthly, with a 0.1% drop in June.
This increase was higher than the forecasted 0.3% rise.

Meanwhile, the Producer Price Index continued to contract for the twelfth consecutive month,

falling 3.6% in July from a year earlier—the same rate of decline as in June but exceeding expectations of a 3.3% drop.

The persistence of weak producer and stable consumer prices

reflects the pressures facing China’s economy due to sluggish domestic demand and ongoing uncertainty in global trade.

Bowman Expects Rate Cuts Amid Weak Labor Market and Stable Inflation

Bowman Expects Rate Cuts Amid Weak Labor Market and Stable Inflation

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