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Federal Reserve's Bowman: Prefers three rate cuts within the year.
Housing demand appears to be the weakest since the financial crisis, appropriately reassessing the situation of rising inflation. The latest employment market data reinforces my prediction of three rate cuts this year, with increased inflation risks and greater confidence that tariffs will not lead to long-term inflation.
It is believed that the core PCE inflation rate is closer to the 2% target than the data suggests. Delayed action may lead to further deterioration in the labor market, indicating that larger rate cuts may be necessary. Easing regulations, lowering taxes, and creating a business-friendly environment could offset the impact of tariffs on economic activity and prices. Due to a significant slowdown in labor demand, wage growth may sharply slow down.
Housing demand appears to be the weakest since the financial crisis, a proper reassessment of the rising inflation situation, the latest labor market data reinforces my prediction of three rate cuts this year, inflation risks are increasing, and I am more confident that tariffs will not lead to long-term inflation.