Fed Governor Bowman: supports treating the rate cut in December as the "last step" of policy readjustment

On January 10th, Golden Ten data, Federal Reserve Board member Bauman said on Thursday that she supported the rate cut last month, believing it to be the ‘last step’ in the adjustment of the Fed’s monetary policy due to the rising inflation risk, and caution must be exercised in the future. ‘We should also avoid prejudging the future policies of the new government,’ Bauman said in a speech prepared for the California Bankers Association. ‘Instead, we should wait for clearer messages and then seek to understand their impact on economic activity, the labor market, and inflation.’ This is the first time Bauman has made the above remarks since becoming a popular candidate for the next top banking regulator at the Fed. Powell announced this week that he would step down as vice chairman responsible for supervision at the Fed by the end of next month. Bauman stated, ‘This year will see a turnover in the leadership of banking institutions, and I expect this to result in a shift in priorities and approaches.’ She reiterated her consistent call for more targeted regulatory provisions and a more ‘pragmatic’ approach to policy-making.