Fed's Bowman signals she may pay more attention to job market in policy debates

Reuters

Fri, Mar 7, 2025, 7:21 AM 1 min read

(Reuters) - Federal Reserve Governor Michelle Bowman, 1 of the U.S. cardinal bank's astir hawkish policymakers, connected Friday signaled she whitethorn wage expanding attraction to signals from the occupation marketplace arsenic she weighs argumentation decisions ahead.

Bowman was responding to probe presented astatine a league examining however the rate-setting Federal Open Market Committee's monetary argumentation influences economical activity. She did not notation the merchandise connected Friday of information showing the U.S. unemployment complaint ticked up past month. That study spurred traders to proceed to stake connected respective Fed involvement complaint cuts this year.

"Although the FOMC has been focused connected lowering ostentation successful the past fewer years, arsenic we proceed to marque advancement connected approaching our 2% target, I expect that the labour marketplace and economical enactment volition go a larger origin successful the FOMC's argumentation discussions," Bowman said successful remarks prepared for transportation astatine a monetary argumentation forum organized by the University of Chicago's Booth School of Business successful New York City.

Bowman did not different talk to the economical oregon monetary argumentation outlook successful her prepared remarks connected the paper, which dealt with argumentation "shocks" and not the Fed's systemic and well-telegraphed argumentation tightening utilized to combat the pandemic-era surge of inflation.

The Fed politician has successful respective of her caller speeches raised questions astir leaning excessively heavy connected occupation marketplace data, fixed its predominant and ample revisions, and has flagged continued worries astir inflation. Bowman has besides said she wants to hold for much clarity connected the Trump administration's policies and their economical effects.

(Reporting by Ann Saphir; Editing by Paul Simao)