Our view on central banks

*TRUMP PLANS TO TAP BRETT MATSUMOTO FOR BLS HEAD, WSJ REPORTS ...

Op-Ed By Donald J. #Trump : My Tariffs Have Brought America Back - @WSJ TRUMP: 'WE HAVE PROVEN, DECISIVELY, THAT, PROPERLY APPLIED, TARIFFS DO NOT HURT GROWTH--THEY PROMOTE GROWTH AND GREATNESS' TRUMP: 'THEY HAVE CREATED AN AMERICAN ECONOMIC MIRACLE' ... TRUMP: 'THE GLOBAL "RETALIATION" AGAINST AMERICAN PRODUCTS THAT SO MANY PUNDITS PREDICTED LAST APRIL NEVER MATERIALIZED'

Good morning, and thank you for the invitation to join you today.1 It is a pleasure to be with you for the Southwestern Graduate School of Banking's 161st Assembly for Bank Directors. Before we get started on the fireside chat, since the Federal Open Market Committee (FOMC) concluded its January meeting earlier this week, I think it would be helpful to summarize my views on the recent policy decision. I will then offer some remarks on the economy and also share my perspective on the outlook for monetary policy. As we enter 2026, the economy has continued to grow, and I see inflation moving closer to our goal. But beneath the surface, the labor market is fragile. I will provide some perspective on why I think that fragility poses the greater risk and what that means for the path of policy. FED’S BOWMAN: RATE HOLD WAS A CLOSE CALL Fed Governor Michelle Bowman said holding rates steady was not an easy decision and reflected a need for more data. She said policy remains moderately restrictive, but after 75 basis points of cuts last year, the Fed can afford to wait.…