Fed’s Bowman: The Fed should be cautious in considering changes to policy rate

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.