Fed's Powell says Fed's focus is on healthy economy

post: Fed's Bowman: Expects It To Be Appropriate To Raise Rates Further - Hold Them At Restrictive Level For Some Time post: Fed's Bowman: Sees Risk That High Energy Prices Could Reverse Some Of Recent Progress On Lowering Inflation - Progress On Inflation To Be Slow 'Given Current Level Of Monetary Policy Restraint' post: FED'S BOWMAN: INFLATION REMAINS TOO HIGHBowman: Brief Remarks on the Economy and Bank Regulation Thank you for the invitation to join you today. It is a privilege to speak to so many bank leaders from Mississippi and Tennessee together at the same time, and I appreciate the opportunity to be here with you.1 As a former community banker, one of the most informative, enjoyable, and productive aspects of my role is the time I spend with community bankers, listening to issues that are important to you and that affect you and your customers, including, of course, the impact of the Fed's regulation and supervision. Community banks play a key role in supporting economic growth and lending to serve their customers and communities, which is an indispensable role in the U.S. economy. Before we turn to our conversation, I'd like to offer a few thoughts on the economy and monetary policy, following our Federal Open Market Committee (FOMC) meeting last month. As you know, at that meeting, my colleagues and I voted to maintain the target range for the federal funds rate at 5-1/4 to 5-1/2 percent, after raising rates sharply over the past year and a half to reduce inflation. Since then, there has been considerable progress on lowering inflation and the FOMC has responded this year with a more gradual pace of increases. In keeping with this approach, we held the policy rate steady in June, raised it by 25 basis points in July, and then held steady again last month. Inflation continues to be too high, and I expect it will likely be appropriate for the Committee to raise rates further and hold them at a restrictive level for some time to return inflation to our 2 percent goal in a timely way. Most recently, the latest inflation reading based on the personal consumption expenditure (PCE) index showed that overall inflation rose, responding in part to higher oil prices. I see a continued risk that high energy prices could reverse some of the progress we have seen o