Fed Vice Chair for supervision Michelle Bowman says the central bank has time to watch how markets and the economy evolve before deciding on more action. Her remarks follow last month's rate rise and a call from Boston Fed President Susan Collins for another increase this year.
Michelle Bowman, the Federal Reserve's Vice Chair for supervision, said on Wednesday the central bank can wait and see how financial markets and the economy develop after its September rate rise. The Fed will then decide whether to take any more action.
During the IMF-World Bank meetings in Bangkok, Bowman said: "I don’t feel any urgency for taking further action at this point", according to Reuters. The Fed raised its policy rate by a quarter of a percentage point to a 3.75%-4.00% range last month.
Her comments came after Boston Fed President Susan Collins said on Tuesday she believes the central bank will need to raise rates again before the end of this year to bring down high inflation.
Bowman also said the Fed considers the actual capital used to create and build data centers, from banks and other funding sources. She added that the Fed must make sure there is capital to support the future economy through its approach to supervision and regulation in the banking system.
She also called for a complete reorganization to improve supervision and boost accountability within the Fed, following a review she commissioned of the 2023 collapse of Silicon Valley Bank.
Source: Investing.com (Reuters)
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