Fed’s lone dissenter advocates for smaller rate cut amid ongoing inflation concerns

The lone dissenter to the Federal Reserve's jumbo rate cut says a smaller first move in this process would have been a preferable action because inflation is still not down to the central bank's 2 per cent target.

In a statement today, Federal Reserve Governor Michelle Bowman agreed that while it was necessary for the central bank to lower interest rates this week, a smaller cut of a quarter percentage point instead of a half percentage point would avoid unnecessarily stoking demand.

Fed Chair Jerome Powell, in a press conference with reporters Wednesday, argued the 50 basis point cut was an attempt to get ahead of a cooling job market now that inflation is on its way down.