Fed's Bowman (voter) explains dissent: With growth slowing and a less dynamic labour market; saw it as appropriate to begin gradually moving the moderately restrictive policy stance toward a neutral setting

Labour:

• "In my view, this action would have proactively hedged against a further weakening in the economy and the risk of damage to the labor market".


• "I think that we should start putting more weight on risks to our employment mandate".


• "If demand conditions do not improve, firms may have little option other than to begin to lay off workers, recognizing that it may not be as difficult to rehire given the shift in labor market conditions".


• "I see the risk that a delay in taking action could result in a deterioration in the labor market and a further slowing in economic growth".

Inflation:

• "I see that upside risks to price stability have diminished as I gain even greater confidence that tariffs will not present a persistent shock to inflation".

Monetary Policy:

• "I remain committed to working together with my colleagues to ensure that monetary policy is appropriately positioned to achieve our dual goals of maximum employment and price stability".


• "Taking a proactive approach in moving closer to neutral would avoid an unnecessary erosion in labor market conditions"

Tariff/Trade:

• "With tariff-related price increases likely representing a one-time effect, it is appropriate to look through temporarily elevated inflation readings".

01 Aug 2025 - 13:00- Fixed IncomeImportant- Source: Fed