MNI BRIEF: Fed's Bowman Expects Continued Economic Strength
Federal Reserve Governor Michelle Bowman said Friday recent data show the economy holding up and the labor market is strong.
The U.S. unemployment rate at 4.2% is "well below" her estimate of full employment, she said, noting it is also below the Congressional Budget Office's estimate of 4.4%. She said her contacts say the labor market is strong. The Fed governor also expressed dismay at significant recent data revisions and added she sees value in speaking with her contacts to get a better sense of the outlook in the economy. She was the lone dissenting vote against the FOMC's 50 bp rate cut last week.
"I'm honestly very interested in making sure we bring inflation back down to the 2% goal and that we have a strong economy," she said in Q&A at an event with the Alabama Bankers Association. "I don't know that we will reach our goals. Right now, the data tells me that we're going to see strength going forward." (See MNI INTERVIEW: Fed To Slow Cuts As Inflation Lingers-Roberts)