Fed Vice Chair Michelle Bowman signals readiness for rate cuts if labor market weakens
Federal Reserve Vice Chair Michelle Bowman says the central bank is prepared to cut rates if the labor market weakens despite earlier conservative outlooks.
Federal Reserve Vice Chair for Supervision Michelle Bowman michelle bowmanstated on Friday that the Federal Reserve should remain prepared to lower interest rates if labor market conditions in the US 
USbegin to weaken. Speaking at the Outlook 26: The New England Economic Forum in Foxborough, Massachusetts, on January 16, 2026, Michelle Bowmansignaled a degree of policy flexibility that could diverge from the central bank's recent projections. This readiness to act comes despite a forecast released in December 2025 which suggested only a single quarter-percentage-point rate cut would occur throughout 2026.
USbegin to weaken. Speaking at the Outlook 26: The New England Economic Forum in Foxborough, Massachusetts, on January 16, 2026, Michelle Bowmansignaled a degree of policy flexibility that could diverge from the central bank's recent projections. This readiness to act comes despite a forecast released in December 2025 which suggested only a single quarter-percentage-point rate cut would occur throughout 2026.
