(Bloomberg) -- Michelle Bowman cast the first dissenting vote by a Federal Reserve governor since 2005, preferring to cut rates by a smaller amount at Wednesday’s policy meeting.
The Fed cut rates by 50 basis points, or half a percentage point, while Bowman was in favor of a 25-basis-point cut, according a statement by the central bank. She has remained cautious about disinflation, saying in an Aug. 20 speech that price growth remained “uncomfortably” above the Fed’s 2% goal and arguing for lowering the fed funds rate “gradually.”
“The committee has gained greater confidence that inflation is moving sustainably toward 2%, and judges that the risks to achieving its employment and inflation goals are roughly in balance,” the Fed said in a statement, adding that officials are “strongly committed to supporting maximum employment” in addition to bringing inflation back to their goal.
Dissents at the Fed have been rare, especially during Chair Jerome Powell’s tenure. The last one came from a regional bank president in June 2022, when Esther George, then chief of the Kansas City Fed, dissented in favor of raising rates by a smaller amount.
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