Wed Sep 24 00:20:00 UTC 2025: Okay, here’s a summary of the text and a news article based on it:

**Summary:**

Federal Reserve Vice Chair for Supervision Michelle Bowman addressed the Kentucky Bankers Association, sharing her views on the U.S. economy and recent monetary policy decisions. She supported the recent interest rate cut, arguing for proactive measures to support the weakening labor market, which she sees as increasingly fragile. Bowman believes that the economy is slowing, housing is declining, and while inflation is within range of the Fed’s target after adjusting for tariffs, focus should shift to the weakening employment side of the dual mandate. She also addressed ongoing efforts in supervision and regulation.

**News Article:**

**Fed’s Bowman Signals Further Rate Cuts Amid Labor Market Concerns**

ASHEVILLE, NC – Federal Reserve Vice Chair for Supervision Michelle Bowman indicated that additional interest rate cuts may be necessary to bolster the U.S. economy, citing growing concerns about the fragility of the labor market. Speaking at the Kentucky Bankers Association Annual Convention in Asheville, North Carolina, Bowman expressed support for the recent 0.25 percentage point cut to the federal funds rate, but suggested this was just the first step in moving policy to a more neutral stance.

“I am concerned that the labor market could enter into a precarious phase,” Bowman stated, pointing to rising unemployment, slowing job growth, and a decline in the employment-to-population ratio. She argued that the Fed should proactively address these issues, even with inflation within range, as the employment side of the Fed’s dual mandate (maximum employment and stable prices) shows signs of deterioration.

Bowman acknowledged the economy’s resilience but highlighted softening consumer spending, declining housing activity, and potential negative impacts from tariffs, that she no longer views as a persistent shock to inflation. She also emphasized that, after adjusting for the estimated effects of tariffs, core inflation is within range of the Fed’s target.

Bowman, the first person with community banking experience to hold the Vice Chair for Supervision role, also touched on her efforts to improve the Fed’s supervisory and regulatory activities, including reviewing capital requirements for banks and addressing payment and check fraud.

Bowman’s remarks signal a potential divergence within the Federal Open Market Committee (FOMC), as she emphasized the need to shift focus from inflation to employment. The FOMC is scheduled to meet again in October. The Fed’s decision is crucial to the nation’s community bankers.

**Key takeaways from the speech**
* **Interest Rate Cut Supported:** Bowman supported the recent rate cut and signaled further cuts may be needed.
* **Labor Market Fragility:** Growing concerns about the weakening labor market drove her stance.
* **Focus on Employment:** She argued for prioritizing employment concerns even with inflation within range.
* **Supervision & Regulation Focus:** Bowman highlighted efforts to improve Fed’s supervisory and regulatory activities.

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