Federal Reserve Watch for Sept. 26: Bowman Says FOMC May Already Be Behind on Rate Cuts

02:06 PM EDT, 09/26/2025 (MT Newswires) -- Fed Vice Chair for Supervision Michelle Bowman (voter) said that recent employment data suggest that the FOMC could already be late in reducing interest rates and that it may need to act more aggressively as a result.

Bowman said that the FOMC needs to shift its focus from the data-dependency that it has followed since the pandemic to forward-looking forecasts and suggested that the impact of tariffs on inflation will be short-term and should be looked past in favor of the negative impact of keeping rates too high on employment.

Richmond Fed President Tom Barkin (nonvoter) told Bloomberg TV that he is seeing less uncertainty for businesses and consumers than earlier in the year and said in separate comments that the rate reduction approved at the September FOMC moves monetary policy closer to neutral to support the labor market while also keeping pressure on inflation.

Recent comments of note:

(Sept. 25) San Francisco Fed President Mary Daly (nonvoter) said more rate reductions will be needed over time, with the risks leaning more toward employment and growth than previously expected.

(Sept. 25) Chicago Fed President Austan Goolsbee (voter) said that he would not be in favor of lowering interest rates too rapidly, even as employment data show signs of slowing, suggesting that it is too soon to assume that inflation will slow as well.

(Sept. 25) Kansas City Fed President Jeffrey Schmid (voter) said that inflation remains high and that the labor market is cooling, though not drastically, suggesting that monetary policy, which he called "slightly restrictive," is well positioned.

(Sept. 25) Fed Governor Stephen Miran (voter) said in an interview with Bloomberg that the FOMC should lower rates quickly, suggesting that he sees current monetary policy as very restrictive and leaves the US economy exposed to downside shocks.

(Sept. 24) San Francisco Fed President Mary Daly (nonvoter) said that further rate cuts will likely be needed, but urged caution in the pace of those reductions, saying that the FOMC needs to both support the slowing labor market and maintain protection against inflation.

(Sept. 23) Fed Chairman Jerome Powell (voter) repeated his recent comments that the stance of monetary policy remains "modestly restrictive" and the FOMC is in a good position to deal with any developments of the economy, noting that downside risks to employment have increased but noting that inflation remains a concern.

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