【US Interest Rates】Federal Reserve Governor Bowman: Expects 3 Rate Cuts This Year, Too Early to Assess War Impact

SocialAnxietyStaker · 2026-03-20T15:17:28+00:00

Federal Reserve Governor Bowman believes it is premature to assess the long-term impact of the Iran war on the U.S. economy. She expects three rate cuts this year and remains concerned about the labor market, emphasizing that businesses are currently more focused on improving the productivity of existing workers rather than replacing workers with artificial intelligence.

SocialAnxietyStaker

2026-03-20 15:17:28

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Federal Reserve Board Governor Bowman said that it is too early to determine the long-term impact of the Iran war on U.S. economic activity, how to incorporate this into long-term economic forecasts, and how to consider it in Federal Open Market Committee (FOMC) meetings and any future interest rate adjustments based on economic developments.

She expects three rate cuts this year, similar to last year, and many things could happen before the end of the year. It is too early to judge the impact of Iran and the conflict. “But I do expect we will start to see some supply-side policies take effect in the economy, as well as the 75 basis point cut we implemented last year.”

Regarding AI replacing workers, Bowman said, “I haven’t heard from companies that they will replace workers with AI. The current discussion is about increasing productivity of existing workers. I hope we will see more hiring because the February employment report was really disappointing. Frankly, I think the January report was an anomaly. So I remain concerned about the labor market. I want to see some recovery there, but of course I expect three rate cuts before the end of 2026. I hope that if this becomes a reality, it will support the labor market.”

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