On November 20, Fed Governor Michelle Bowman delivered a speech discussing the Fed’s dual mandate of maximum employment and price stability, noting the inherent challenges in balancing these goals in light of recent economic conditions. Governor Bowman discussed the recent vote to lower the federal funds rate by one-half of a percentage point, and provided an analysis of current economic indicators, including the strength of the labor market, strong household spending, and persistent inflation particularly in housing services. Bowman emphasized the importance of relying on the best available data, while acknowledging the imperfections and uncertainties inherent in economic forecasting.

In discussing banking regulation and supervision, Bowman emphasized the need for a balanced approach that promotes the safe and sound operations of banks and economic growth and efficiency. She cautioned against “regulatory overreach” and stressed the importance of identifying and addressing problems without imposing unnecessary burdens on the banking system. Bowman also highlighted the need for transparency and accountability in regulatory actions.