Hawkish Fed Governor Bowman Flags Inflation Stagnation

Bowman stated that inflation progress appears to have stalled. Analysts suggest she may oppose further rate cuts in December if the labor market remains robust.

Governor Lisa Cook noted it may be appropriate to reduce rates to a more neutral stance over time, while Vice Chair for Supervision Michael Barr affirmed he would continue his term, regardless of Trump’s potential return.

Bridgewater Co-CIO Bob Prince speculated that Trump might nominate a Fed chair tolerant of higher inflation targets to facilitate rate cuts if U.S. inflation hovers around 3% in six months.