Fed Governor Bowman Breaks Consensus on Rate Cut Decision

Michelle Bowman's dissent marks the first split by a Fed governor on an interest rate decision since 2005.

Federal Reserve Governor Michelle Bowman voted against a 50 basis point rate cut, advocating instead for a 25 basis point reduction.
This dissent is the first from a Fed governor in nearly two decades, highlighting internal divisions on monetary policy.
Chair Jerome Powell emphasized that the committee had extensive discussions and that multiple rate cuts are anticipated this year.
Bowman has consistently been one of the more hawkish voices on the Fed Board, advocating for tighter monetary policy to control inflation.
The last notable dissent within the Fed occurred in 2022, when Kansas City Fed President Esther George voted for a smaller rate hike.