Fed’s Bowman: supported Dec. rate cut as ‘final’ recalibration step

Laguna Beach: So, Michelle Bowman from the Federal Reserve just shared her thoughts on the recent interest rate cut. She thinks it’s the last big move we needed to make for now, especially with inflation creeping up.

She spoke at a gathering for the California Bankers Association and mentioned that we shouldn’t jump to conclusions about what the new administration might do. It’s better to wait and see how things unfold before making any judgments about the economy and job market.

This was her first public comment since she became a leading candidate to take over as the Fed’s top banking regulator. She’s been pretty vocal about her disagreements with the current vice chair, Michael Barr, who’s stepping down soon.

Bowman believes that the upcoming changes in leadership at banking agencies will lead to a shift in how things are done. She’s all for a more practical approach to regulations, suggesting that banks and regulators should work together rather than against each other.

On the monetary policy front, she’s a bit worried that we might not be making enough progress on inflation. She pointed out that rising stock prices could be stalling that progress. Bowman prefers a careful and steady approach to any policy changes.

Interestingly, she was the first Fed governor in years to disagree with a rate cut back in September. Now, she’s saying she could have been okay with no changes in December. It’s clear she’s keeping a close eye on how things develop.