On February 17, Fed Governor Michelle Bowman delivered prepared remarks, during a conference in Arizona, addressing monetary policy, the economic outlook, and regulatory issues affecting community banks. She discussed the Federal Open Market Committee’s (FOMC) recent decision to adjust the federal funds rate, emphasizing a cautious approach to ensure inflation continues to decline without stoking demand prematurely. Bowman also addressed the importance of maintaining an effective regulatory framework tailored to the size, risk, complexity and business model of community banks, cautioning against regulatory burdens that could hinder their operations and innovation. She advocated for a balanced approach in supervision, emphasizing the need for accountability and transparency in supervisory ratings and processes. She also discussed the challenges within the bank application process, particularly for de novo bank formations, and called for reforms to streamline the process. Additionally, Bowman highlighted the need for a comprehensive review of existing regulations to ensure they are “encouraging growth and innovation, and safety and soundness.”