US FOMC Member Bowman Speaks

Good afternoon, and thank you for joining us today at the Board's third annual Financial Inclusion Conference. While I am unable to join you in person, I wanted to highlight the importance of financial inclusion in building a strong and stable financial system and an economy that works for everyone. Much of today's discussion will highlight how innovation enables financial inclusion. Banks are at the center of financial inclusion efforts, and one of the most powerful tools banks have to expand access and build a more inclusive financial system is through innovation. When banks innovate responsibly, they can build a faster and more efficient banking and payments system, lower costs, expand product availability to underserved consumers and businesses, and promote market competition. These outcomes advance financial inclusion by making useful, affordable financial services within reach of more Americans. Fed's Bowman: The Fed should not micromanage banks on issues like AI.

Chairman Hill, Ranking Member Waters, and other Members of the Committee, thank you for the opportunity to testify on the Federal Reserve's supervisory and regulatory activities. Today, my testimony will cover three areas—current banking conditions, regulatory and supervisory reforms implemented since the Committee's last prudential regulator hearing, and our path forward as we continue to promote the safety, soundness, and stability of the U.S. financial system while supporting economic growth. Banking Conditions I will begin by ...

Fed's Bowman: It was good for the Fed to keep easing bias in the April 29th policy statement Fed's Bowman: Reacting to temporary energy shock could weigh down the economy. Fed's Bowman: The Fed's current 'moderately restrictive’ policy aimed at aiding jobs and lowering inflation FED'S BOWMAN STATED SHE MAY CHANGE POLICY VIEW IF WAR-RELATED INFLATION SPREADS. Bowman: A Framework for Practical Monetary Policy Decision Making Good afternoon. I would like to thank Governor Jónsson for the invitation to take part in the Central Bank of Iceland's Reykjavík Economic Conference. It is a pleasure to be here in Reykjavík with you and to share my thoughts on formulating a practical approach to monetary policy decision making. As you know, the Federal Reserve conducts monetary policy to support a strong and stable economy. In doing so, the Federal Open Market Committee (FOMC) pursues the congressionally mandated goals of maximum employment and price stability. The Fed uses a variety of tools to carry out its monetary policy strategy and implementation. Our primary monetary policy tool is the federal funds rate, which is a key interest rate for commercial bank overnight borrowing that influences other interest rates throughout financial markets and the economy. Lower interest rates reduce borrowing costs and tend to raise asset prices and wealth, thereby stimulating consumer spending and business investment—especially on vehicles and other durables goods, housing, and equipment and intangibles—and, ultimately, supporting employment. By stimulating demand, lower interest rates also have the potential to raise inflation. In contrast, higher interest rates generally exert a drag on economic activity and employment and tend to lower inflation. Over my tenure on the Board and the FOMC, we revised our monetary policy framework twice. While I appreciate that frameworks may evolve over time, I am pleased that the FOMC returned the framework to basic principles last year. Since joining the Board in 2018, the Committee has faced a number of significant economic challenges—including both very high inflation and unemployment, and many economic shocks. This experience has given me valuable perspective in assessing economic conditions and the balance of risks

Good afternoon and thank you for the invitation to join you at the Hoover Institution's annual Monetary Policy Conference.1 As the Federal Reserve's Vice Chair for Supervision, I oversee the safety and soundness of banking institutions, responsibilities that are closely linked to another of the Fed's important duties, which is to safeguard financial stability. Instead of talking about monetary policy, my remarks will focus on this topic. Today, I will address a challenge that emerges at the intersection of these two responsibilities. ...

Good morning. It is a pleasure to join you for the annual Women in Housing and Finance Symposium. As a woman in finance, I appreciate this organization's focus on women in the industry. Thank you for the invitation to join you. Today I would like to discuss an issue that is critical to ensuring the financial security of all Americans, but especially those who are most financially vulnerable—consumer fraud. Obviously, this is not a new topic, in fact, it has been around as long as money itself. Since people have transacted things of ...

Good afternoon, thank you for the invitation to join you for the Consumer Bankers Association's CBA LIVE 2026, and for Lindsey Johnson and CBA's leadership in the industry. We have been busy at the Federal Reserve and the other prudential regulators over the past 9 months, so today, I would like to share my thoughts on some of this work.1 Congress has given the Federal Reserve a dual mandate, to promote maximum employment and stable prices. But while monetary policy can support achieving the economic conditions necessary to reach ...

Good morning. It's good to be here with you at the Cato Institute to discuss our approach to bank capital requirements.1 Capital requirements form the foundation of our prudential regulatory framework, and in the coming weeks we will propose rules to implement the final phase of Basel III in the United States. These changes to the capital framework eliminate overlapping requirements, right-size calibrations to match actual risk, and comprehensively address long-standing gaps in our prudential framework. The result is more efficient ...