💵 Fed’s Michelle Bowman Expects Two More Interest Rate Cuts in 2025
Federal Reserve Governor Michelle Bowman said on Tuesday that she continues to expect the U.S. central bank to deliver two more interest rate cuts before the end of 2025.
“I continue to see two more cuts before the end of this year,” Bowman stated during a policy event in Washington, D.C.
Last month, the Federal Reserve lowered its benchmark rate by 0.25 percentage points, setting the federal funds target range at 4.00% to 4.25%. It marked the first rate reduction since December, signaling a shift in policy as the job market shows signs of cooling.
According to the Fed’s latest projections, a slight majority of policymakers expect further rate cuts this year to support growth amid moderating labor conditions.
The Fed’s next policy meeting is scheduled for October 28–29, with the final session of the year set for the second week of December. Current futures market data suggests traders are pricing in quarter-point rate cuts at both upcoming meetings.
Bowman emphasized that future policy moves will depend on data trends:
“As long as the labor market and broader economic data evolve as expected, we’ll remain on track to lower the federal funds rate,” she said.
Bowman supported the most recent rate cut after previously dissenting in July, when she argued that rate reductions should have begun earlier. She was joined in that stance by Fed Governor Christopher Waller, who, like Bowman, was appointed to the Board of Governors by President Donald Trump during his first term.
Both Bowman and Waller have said they do not expect Trump’s new tariffs to cause long-term inflation, adding that the greater risk now lies in the weakening job market rather than persistent price pressures.
