NEW YORK (AP) — A top official at the Federal Reserve said Saturday that this month's stunning, weaker-than-expected report on the U.S. job market is strengthening her belief that interest rates should be lower.
Michelle Bowman was one of two Fed officials who voted a week and a half ago in favor of cutting interest rates. Such a move could help boost the economy by making it cheaper for people to borrow money to buy a house or a car, but it could also threaten to push inflation higher.
Bowman and a fellow dissenter lost out after nine other Fed officials voted to keep interest rates steady, as the Fed has been doing all year. The Fed's chair, Jerome Powell, has been adamant that he wants to wait for more data about how President Donald Trump's tariffs are affecting inflation before the Fed makes its next move.
At a speech during a bankers' conference in Colorado on Saturday, Bowman said that “the latest labor market data reinforce my view” that the Fed should cut interest rates three times this year. The Fed has only three meetings left on the schedule in 2025.
The jobs report that arrived last week, only a couple of days after the Fed voted on interest rates, showed that employers hired far fewer workers last month than economists expected. It also said that hiring in prior months was much lower than initially thought.
On inflation, meanwhile, Bowman said she is getting more confident that Trump's tariffs “will not present a persistent shock to inflation” and sees it moving closer to the Fed's 2% target. Inflation has come down substantially since hitting a peak above 9% after the pandemic, but it has been stubbornly remaining above 2%.
The Fed’s job is to keep the job market strong, while keeping a lid on inflation. Its challenge is that it has one main tool to affect both those areas, and helping one by moving interest rates up or down often means hurting the other.
A fear is that Trump's tariffs could box in the Federal Reserve by sticking the economy in a worst-case scenario called “stagflation,” where the economy stagnates but inflation is high. The Fed has no good tool to fix that, and it would likely have to prioritize either the job market or inflation before helping the other.
On Wall Street, expectations are that the Fed will have to cut interest rates at its next meeting in September after the U.S. jobs report came in so much below economists' expectations.
Trump has been calling angrily for lower interest rates, often personally insulting Powell while doing so. He has the opportunity to add another person to the Fed's board of governors after an appointee of former President Joe Biden stepped down recently.
FILE - Michelle Bowman, Vice Chair for Supervision of the Federal Reserve Board of Governors, takes a seat for an open meeting of the Board of Governors at the Federal Reserve, in Washington, June 25, 2025. (AP Photo/Mark Schiefelbein, File)
DETROIT (AP) — Tarik Skubal shed some tears, walking on a field that used to be his home turf as the team that traded him away paid tribute to the two-time Cy Young Award winner with a video montage before the first pitch.
“Luckily enough, I was able to make it to the tunnel before more happened,” Skubal said after allowing one run over six innings to help the Los Angeles Dodgers beat the Detroit Tigers 2-1 on Friday night. “It’s tough. This is the place I’ve known my entire career since 2018.
"It’s special.”
Skubal was welcomed with cheers and a smattering of boos in his return to Detroit, pitching for the first time against the middling franchise that traded him to the two-time defending World Series champions.
When the visitors' lineup and Skubal were shown on the videoboard and his name was announced before the first pitch, most of the crowd at Comerica Park clapped for him while some jeered.
The Tigers showed highlights from his seven-season career with the team and posted a message at the end: Thank you, Tarik.
Skubal turned his head to the right a few times to watch the video as he walked from the bullpen beyond the left-field wall and toward the Dodgers' dugout with a white towel draped around his neck, which he used to wipe away sweat and tears.
He extended his right arm, holding his glove, toward his former teammates and used his left hand to pat his chest.
After the game, Skubal returned to the field to catch up with some of his former teammates.
Skubal did not appear to react to, or acknowledge, the fans before or during the game and didn't get a chance to do so as he exited the game because a pitching change was made after the sixth inning in a 1-all game. He struck out seven over six innings with 83 pitches, the fewest since he threw 74 in the season-opening game in March.
Dodgers manager Dave Roberts said the plan was to limit Skubal's pitches after he threw 106 and 109 in his previous two starts.
In a crowd that had mixed emotions about Skubal’s return, a couple young fans had fitting outfits sporting white Tigers jerseys with 29 and Skubal on the back — and a blue Dodgers hat.
When the left-hander jogged to the mound to pitch for the first time as a visitor in the Motor City, booing fans were heard first followed by more cheers from fans in the stands.
His first pitch was delayed because he appeared to have trouble with his communication device.
After throwing a 96-mph fastball for a ball, Gleyber Torres hit Skubal's second pitch to center for a double and the crowd roared in unison.
Skubal settled in, striking out Hao-Yu Lee and All-Star Kevin McGonigle and getting All-Star Dillon Dingler to fly out.
“It’s weird to see him on the other side,” McGonigle said before the game.
Tigers manager A.J. Hinch said the team's familiarity with Skubal might not be helpful at the plate.
“If anybody knows him, it’s us,” Hinch said. “You can know everything about a pitcher, that doesn’t make it easy to hit.”
That was evident when Skubal retired 12 straight batters, including striking out the side in the third, before Eduardo Valencia led off the fifth with a double. Max Clark followed with a two-out triple in the inning to break a scoreless tie.
The 29-year-old Skubal was drafted by Detroit out of Seattle University in the ninth round of the 2018 draft and spent his entire career with the Tigers until they dealt him earlier this month.
Skubal said in July that it was his preference to finish the season with the Tigers and to compete for a World Series championship, which has eluded the franchise since 1984. The Tigers, though, thought it was wise to trade him before the deadline to acquire three minor league prospects instead of likely losing him in free agency.
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Los Angeles Dodgers pitcher Tarik Skubal throws against the Detroit Tigers during the fourth inning of a baseball game Friday, Aug. 28, 2026, in Detroit. (AP Photo/Paul Sancya)
Los Angeles Dodgers pitcher Tarik Skubal throws against the Detroit Tigers during the first inning of a baseball game Friday, Aug. 28, 2026, in Detroit. (AP Photo/Paul Sancya)
Los Angeles Dodgers pitcher Tarik Skubal smiles in the dugout against the Detroit Tigers during the first inning of a baseball game Friday, Aug. 28, 2026, in Detroit. (AP Photo/Paul Sancya)
Los Angeles Dodgers pitcher Tarik Skubal throws against the Detroit Tigers during the first inning of a baseball game Friday, Aug. 28, 2026, in Detroit. (AP Photo/Paul Sancya)
Los Angeles Dodgers pitcher Tarik Skubal throws against the Detroit Tigers during the first inning of a baseball game Friday, Aug. 28, 2026, in Detroit. (AP Photo/Paul Sancya)
Los Angeles Dodgers pitcher Tarik Skubal claps as he walks to the dugout before the first inning of a baseball game against the Detroit Tigers Friday, Aug. 28, 2026, in Detroit. (AP Photo/Paul Sancya)
