--- title: "Federal Reserve Governor Michelle Bowman: February non-farm data strengthens the case for rate cuts, oil price surge is a \"one-time shock\" and not afraid of inflation" type: "News" locale: "en" url: "https://longbridge.com/en/news/278185659.md" description: "Federal Reserve Governor Michelle Bowman stated that the weak non-farm payroll data for February further supports the case for interest rate cuts. She believes that the Federal Reserve should focus on supporting the labor market rather than worrying about inflation, and that current interest rates should be close to neutral levels. Bowman mentioned that the rise in oil prices is a one-time shock and will not have a long-term impact on inflation" datetime: "2026-03-07T01:04:02.000Z" locales: - [zh-CN](https://longbridge.com/zh-CN/news/278185659.md) - [en](https://longbridge.com/en/news/278185659.md) - [zh-HK](https://longbridge.com/zh-HK/news/278185659.md) --- # Federal Reserve Governor Michelle Bowman: February non-farm data strengthens the case for rate cuts, oil price surge is a "one-time shock" and not afraid of inflation According to the Zhitong Finance APP, Federal Reserve Governor Milan stated on Friday that the weak non-farm payroll report for February further strengthens the case for the central bank to lower interest rates further. In response to the U.S. non-farm payrolls report released by the Bureau of Labor Statistics on Friday, which showed a decrease of 92,000 jobs in February, Milan said in an interview that the Federal Reserve should focus more on supporting the labor market rather than worrying about inflation. He stated, "I don't think we have an inflation problem. I believe the labor market needs a more accommodative monetary policy. Moreover, I don't think it is appropriate to adopt a slightly tightening monetary policy stance rather than a neutral stance. I think a position close to neutral is appropriate." Currently, the Federal Reserve's target range for the key interest rate is 3.5% to 3.75%. Previously, the Federal Reserve had cut rates three times by 25 basis points in the second half of 2025. If Milan's idea is realized—keeping rates close to neutral—he believes that the neutral level is about one percentage point lower than the current level. The consensus among Federal Reserve officials at the December meeting was that the neutral level—neither restraining nor stimulating the economy—is about 3.1%, which suggests that there may be two more rate cuts. Milan has consistently argued that persistently high inflation data is more dependent on how the U.S. Department of Commerce and the Department of Labor measure inflation, rather than true underlying pressures. One factor he mentioned is portfolio management fees, which have increased due to the overall rise in the stock market. Portfolio management fees are typically charged as a percentage of assets, so when the market rises, the dollar value of these fees increases even if the actual fee rates for these services do not change. Milan added that the recent surge in oil prices and the corresponding rise in gas station costs related to the war with Iran are not concerning. He said, "Typically, the Federal Reserve does not react strongly to rising oil prices. Rising oil prices push up overall inflation, but this is often just a one-time shock. Core inflation (excluding energy prices) is more predictive of medium-term inflation trends than overall inflation." Since President Trump nominated Milan to serve as a member of the Federal Open Market Committee in September last year, Milan has voted against every Federal Open Market Committee meeting he has attended. For the three rate cuts, he preferred a larger cut of 50 basis points rather than the 25 basis points approved by the committee. In January of this year, when the Federal Open Market Committee voted not to cut rates, Milan expressed his desire for a 25 basis point cut. When asked if he would vote against again, he said, "I hope not, but it depends on my colleagues. I hope we vote to decide on a rate cut." Milan was appointed to complete the remaining term of Adriana Kugler, who resigned in August 2025. This term expired in January this year, but Milan continues to serve until his successor is approved. Trump nominated Kevin Warsh to serve as the Federal Reserve Chairman, a position that will ultimately succeed the current Federal Reserve Chairman Jerome Powell, whose term will expire in May. Milan said, "I will attend a meeting in a few weeks, and then I will take it step by step." ## Related News & Research - [A look at the incredible 11-day rally in the Nasdaq](https://longbridge.com/en/news/282876019.md) - [Coca-Cola (KO) Keeps Delivering as Markets Turn Ugly. The Bull Case Still Holds](https://longbridge.com/en/news/282954653.md) - [Google’s SpaceX Stake Revealed for the First Time, What to Know About Google, SpaceX and Musk](https://longbridge.com/en/news/282943946.md) - [Anthropic faces outages amid Coinbase and Bitcoin exposure](https://longbridge.com/en/news/282894974.md) - [Taiwan Semiconductor Manufacturing Q1 Preview: What Could 12th Straight Double Beat Mean With Shares Near All-Time Highs?](https://longbridge.com/en/news/282878796.md)