Bowman: Economy and Accountability in Supervision, Applications, and Regulation
February 17, 2025
Governor Michelle W. Bowman of the Board of Governors of the Federal Reserve System delivered brief remarks on the economy and accountability in supervision, applications, and regulation on February 17, 2025.
Economy Discussion Governor Bowman began by discussing the current economic landscape, noting that the economy continues to face challenges due to the ongoing COVID-19 pandemic. She highlighted the elevated level of inflation, which remains above the Federal Reserve’s 2 percent target, and the continued weakness in the labor market.
Bowman stated that the Federal Reserve is committed to bringing inflation back to its target and achieving maximum employment. She noted that the Federal Open Market Committee (FOMC) has begun to raise interest rates and reduce the size of the Fed’s balance sheet. Bowman emphasized that the FOMC will continue to make policy decisions based on incoming data and the evolving economic outlook.
Supervision and Accountability
Bowman then turned to the topic of supervision and accountability, highlighting the importance of ensuring the safety and soundness of the financial system. She noted that the Federal Reserve has taken several steps to strengthen its supervisory framework, including:
- Enhancing its risk assessment capabilities
- Increasing the frequency and intensity of bank examinations
- Strengthening capital and liquidity requirements
Bowman emphasized that the Federal Reserve is committed to holding financial institutions accountable for their actions. She noted that the Federal Reserve has taken enforcement actions against several large financial institutions for violations of banking laws and regulations.
Applications and Regulation
Finally, Bowman discussed the Federal Reserve’s role in reviewing applications for bank charters and other financial licenses. She noted that the Federal Reserve has a responsibility to ensure that only well-managed and financially sound institutions are allowed to enter the financial system.
Bowman stated that the Federal Reserve is committed to a fair and transparent application review process. She noted that the Federal Reserve has recently revised its application process to make it more streamlined and efficient.
Conclusion
Bowman concluded her remarks by emphasizing the importance of the Federal Reserve’s mission to promote a healthy economy, ensure the safety and soundness of the financial system, and protect consumers. She noted that the Federal Reserve will continue to work towards these goals and adapt to the evolving economic and regulatory landscape.
Bowman, Brief Remarks on the Economy and Accountability in Supervision, Applications, and Regulation
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