In her first public address as a Federal Reserve Governor, Michelle Bowman highlighted her support for December’s rate cut, viewing it as a final step in the monetary policy adjustment amidst rising inflation risks. She stressed the importance of waiting for more information to understand the effects on economic activity and labor market dynamics.

Bowman noted potentials of a leadership transition at banking agencies, suggesting it might result in shifts in regulatory focus and approach. Her remarks emphasize a partnership between banks and regulators to ensure a secure banking system. She underscored the need for clear regulations tailored to differ in application while maintaining a pragmatic approach to policymaking.

She expressed reservations regarding stalled progress on inflation, igniting concerns about pent-up demand. While mentioning rising stock prices possibly hindering inflation progress, Bowman advocated for a careful and gradual approach in future monetary policy adjustments to manage inflation risks effectively. She dissented on prior significant rate reductions, supporting a no-action stance in December.