Core Viewpoint - Federal Reserve Vice Chair Michelle Bowman supports three interest rate cuts this year, influenced by recent weak labor market data [1][2] Group 1: Interest Rate Cuts - Bowman advocates for starting interest rate cuts in the September meeting to prevent further deterioration in the labor market and reduce the likelihood of needing larger policy adjustments later [2] - Last week, the Federal Reserve maintained the federal funds rate target range at 4.25% to 4.50%, with Bowman and another board member voting against this decision, favoring a 25 basis point cut [1] Group 2: Inflation and Economic Outlook - Bowman reiterated her belief that tariff-driven price increases are unlikely to sustain inflation, expressing confidence that the upward risks to price stability have diminished [4] - She emphasized the need to focus on risks to employment goals, given that core inflation is trending towards the 2% target and there are signs of weakness in the labor market [4] Group 3: Community Banks - Bowman will host a meeting on October 9 to discuss potential reforms to the capital framework for community banks, expressing concern over their declining market share against larger banks [1][5] - She highlighted the importance of community banks as foundational to the banking and financial system, noting that they often face neglect regarding long-standing and emerging issues [5]