Fed officials are starting to break rank and join Trump

Fed officials are starting to break rank and join Trump

Fed Vice Chair for Supervision Michelle Bowman on Monday downplayed the potential impacts of Trump’s tariffs on prices and said the US central bank should swiftly lower rates to preserve the labor market’s health.

“It is time to consider adjusting the policy rate,” Bowman said. “Should inflation pressures remain contained, I would support lowering the policy rate as soon as our next meeting in order to bring it closer to its neutral setting and to sustain a healthy labor market.”

Bowman is the second Fed official to join Trump in calling for lower borrowing costs. On Friday, Fed Governor Christopher Waller said tariffs will likely only result in a “one-off” increase in inflation. Both Bowman and Waller are Trump appointees.

Other Fed officials aren’t quite joining Trump in calling for lower rates, but are signaling they’re warming up to the idea of it.