Michelle Bowman, Speech: Independence, Predictability, and Tailoring in Banking Regulation and Supervision

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“At our most recent meeting, we continued on that path by further increasing the target range for the federal funds rate by 25 basis points to 4½ to 4¾ percent. I expect that ongoing increases will be appropriate to bring the federal funds rate to a sufficiently restrictive level and that it will need to remain there for some time to restore price stability.”

Fed Funds

”We are still far from achieving price stability, and I expect that it will be necessary to further tighten monetary policy to bring inflation down toward our goal. Doing so will likely lead to subdued growth in economic activity and some softening in labor market conditions. While there are costs and risks to tightening monetary policy to lower inflation, I see the costs and risks of allowing inflation to persist as far greater. Restoring price stability is essential to support a sustainably strong labor market.”

“Given the highly uncertain environment, my views on the future path of monetary policy will continue to be informed by the incoming data and its implications for the outlook. I will continue to look for consistent evidence that inflation remains on a downward path when considering further rate increases and at what point we will have achieved a sufficiently restrictive stance for the policy rate.”

A few, brief comments about the economy were shared during the Q&A segment, although no new economic information was shared. Q&A was not transcribed.