WASHINGTON, United States, Jan 17, 2026 (BSS/AFP) - A key US Federal Reserve official said Friday that central bank policymakers should be ready to lower interest rates further, citing "fragility" in the jobs market.

"Absent a clear and sustained improvement in labor market conditions, we should remain ready to adjust policy to bring it closer to neutral," said Michelle Bowman, the Fed's vice chair for supervision.

In prepared remarks to a forum in Massachusetts, Bowman said inflation was initially a concern for her last year.

But her views changed as she began observing "clearer signs of slowing economic growth and increasing fragility in the labor market."

She added that she grew more confident that the inflationary effects from President Donald Trump's sweeping tariffs would also "largely be one-off."

Looking ahead, Bowman believes that inflation is on a "sustained trajectory" towards the Fed's longer-term two percent target.

"My view is that we should continue to focus on risks to our employment mandate and preemptively stabilize and support labor market conditions," she said.

She also warned that the employment market could weaken further: "The labor market can appear to be stable right up until it doesn't."

The Fed's next policy meeting is scheduled for January 27-28.

Policymakers are widely expected to keep interest rates unchanged as they assess the effects of three consecutive rate cuts last year.

Bowman had backed all three of the Fed's quarter-percentage-point reductions.

But Trump has repeatedly called for rates to be slashed more to boost the economy, slamming Fed chair Jerome Powell for not backing aggressive rate cuts.