The topic of this speech was “Reflections on 2024: Monetary policy, economic performance, and lessons for banking regulation”.
- Supported December cut as a ‘final step’ in policy recalibration
- Says she could have supported no action in December, given lack of progress on inflation and strength in economy
- Prefers a cautious, gradual approach to adjusting policy
- Current stance of policy may not be as restrictive as others may see it
- We should refrain from judging incoming administration policies until we see them
- Inflation elevated, see upside risks, progress has stalled
- Wage growth remains above pace consistent with inflation goal
- Says she sees greater risks on inflation mandate than jobs
- Bank regulators should adopt a more pragmatic approach to policymaking
Bowman is a leading candidate to take over the Fed’s banking supervision role.
This article was written by Adam Button at www.forexlive.com. Source