This highlights a surprising shift by Michelle Bowman, a Federal Reserve governor known for her hawkish stance against rate cuts, now supporting an emergency rate cut in July 2025, potentially signaling a major policy pivot amid economic uncertainty; this aligns with recent data showing U.S. unemployment rising to 4.3% in July 2024, per Bankrate, hinting at underlying labor market stress.
This change could trigger a “money printer” effect, boosting liquidity and risk assets like cryptocurrencies, as suggested by historical parallels to the 2019/2020 rate cuts, though a 2023 Federal Reserve study (FEDS Notes) cautions that such moves often lead to short-term market volatility rather than sustained growth.
Bowman’s new role as Vice Chair for Supervision, effective June 9, 2025, adds weight to her stance, but her past as a FEMA official and lack of direct banking experience (Federal Reserve bio) raises questions about her economic forecasting reliability, challenging the market’s bullish assumptions.
