Federal Reserve Governor Bowman: Support for the December rate cut as the "last step" in policy readjustment

Bowman, a governor of the Federal Reserve, said on Thursday that she supported last month's interest rate cut as the "final step" in the Fed's monetary policy adjustment and that caution must be exercised in the future as inflation risks rise. "We should also avoid prejudging the future policies of the new administration," Bowman said in remarks to the California Bankers Association. "Instead, we should wait for more clarity and then seek to understand the implications for economic activity, the labor market and inflation." In her first comments since Bowman became a favorite to be the Fed's next top bank regulator, Barr announced this week that he would step down as the Fed's vice chairperson for supervision by the end of next month. "This year will see a leadership transition in banking institutions and I expect that to translate into a shift in priorities and approach," Ms Baumann said, repeating her usual calls for more targeted regulation and a more "pragmatic" approach to policymaking.