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)
SAN FRANCISCO (AP) — One person died, two people were missing and 16 others were rescued from the waters off San Francisco after a pontoon boat carrying 19 people sank Tuesday afternoon, authorities said.
San Francisco Fire Chief Dean Crispen reported the toll and said crews that arrived on the scene near Alcatraz Island found a three-deck pontoon vessel almost fully under water, with the motor still running and leaking fuel.
The waters around Alcatraz Island, once a federal prison and now a tourist destination, attract sailboats and other recreational vessels. It lies in San Francisco Bay about a mile (about 1.6 kilometers) north of the city's shoreline.
The boating mishap was initially reported as a fire, “but we now don’t have any evidence of that,” Crispen said.
Some of the people were injured from falling into the water, but there were no reports of burns, he said. The person who died was alive when plucked from the frigid waters by rescue crews but later died. A dog onboard also died.
Crews continued to search the water for the two missing with divers, helicopters and 11 vessels, Crispen said.
“Right now we are in full rescue mode,” he added.
All those rescued were taken to Gashouse Cove Marina, a small craft harbor in San Francisco. Three people with injuries from falling from the boat were taken to the hospital, Crispen said.
Fire Lt. Mariano Elias said the vessel, described as a “pontoon pleasure boat,” was about 600 yards (about 550 meters) from Alcatraz and the emergency call came in just after 3:30 p.m.
Crispen said the vessel was believed to have launched near the St. Francis Yacht Club in San Francisco. A person who answered the phone there said the club did not have any information on what happened.
Video images from a local Fox station showed a Fire Department boat deployed to rescue people who had been on the vessel, which was largely submerged with objects floating nearby.
Live video from the scene showed a man and a woman wrapped in blankets and sitting on a curb before walking to a nearby ambulance. A yellow tarp covered a body on the dock.
The Coast Guard and Oakland police also helped in the rescue, Elias said.
A U.S. Coast Guard crew goes past Alcatraz Island near the site of a pontoon boat accident on Tuesday, July 14, 2026, in San Francisco. (AP Photo/Noah Berger)
A body is covered with a tarp on a dock near the site of boat accident on Tuesday, July 14, 2026, in San Francisco. (AP Photo/Noah Berger)
A body is covered with a tarp on a dock near the site of boat accident on Tuesday, July 14, 2026, in San Francisco. (AP Photo/Noah Berger)
Emergency crews gather at a dock near the site of a pontoon boat fire on Tuesday, July 14, 2026, in San Francisco. (AP Photo/Noah Berger)
Emergency crews stage near the site of a pontoon boat fire on Tuesday, July 14, 2026 in San Francisco. (AP Photo/Haven Daley)
An Oakland Police boat is docked near the site of a pontoon boat fire on Tuesday, July 14, 2026 in San Francisco. (AP Photo/Haven Daley)
A U.S. Coast Guard crew patrols near the site of a pontoon boat fire on Tuesday, July 14, 2026 in San Francisco. (AP Photo/Noah Berger)
Emergency crews gather at a dock near the site of a pontoon boat fire on Tuesday, July 14, 2026, in San Francisco. (AP Photo/Noah Berger)
