MNI BRIEF: Fed's Bowman Sees Room For 75BPS Of Cuts In 2026

Federal Reserve Vice Chair for Supervision Michelle Bowman said Monday she sees room for three quarter point rate cuts this year because she sees monetary policy as still restrictive even as inflation eases and downside risks to the job market linger. 

Bowman said she's still focused on threats to employment stability despite a better-than-expected jobs report for January, pointing to growth concentrated in a couple of sectors as "not a sign of a healthy labor market." At the same time, Bowman said she was heartened by the latest inflation data and belives prices pressures will continue to subside.

"We got some more data in it's a little softer than I think most expected. That's in line with my expectations that we will start to see inflation decline much closer to 2% especially as the tariff effects begin to wane even further." (See MNI INTERVIEW: Fed's Miran Sees Room For Substantial Cuts This Year)