Michelle W Bowman: Confirmation hearing
Testimony by Ms Michelle W Bowman, Member of the Board of Governors of the Federal
Reserve System, before the Committee on Banking, Housing, and Urban Affairs, US Senate,
Washington DC, 5 June 2019.
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Chairman Crapo, Ranking Member Brown, and members of the Committee, it has been just over
a year since this Committee first recommended my nomination as a Federal Reserve Board
Governor. While I am not the first community banker to serve on the Board, I am humbled by the
opportunity you gave me to serve as the first Governor to fill the role the Congress designated for
someone with community banking experience on the Federal Reserve Board. I am deeply
honored the President has renominated me to serve in that capacity.
I am also grateful to my family for their continued support. My husband, Wes, and our children,
Jack and Audrey, are here with me today. The rest of my family are watching from home in
Kansas.
Since my confirmation last year, I have worked to fulfill my unique role on the Board by traveling
widely and listening closely to community bankers, consumers, small business owners, and
community leaders. I have visited with farmers, workers, and business leaders from across the
country to discuss the economy. I am making sure these unique perspectives are represented in
the Federal Reserve's deliberations and decision making on both monetary policy and regulatory
matters.
During my time at the Board, I have also drawn on my experience as a community banker and
regulator to ensure that our work is guided by a deep understanding of the practical realities
confronting bankers and the communities they serve across the country. The work done after the
crisis to address the weaknesses in the U.S. financial system and ensure its future resilience
was essential. However, during my time at my family's community bank, I saw firsthand how the
regulatory changes created in the aftermath of the crisis impacted community financial
institutions. Small, solid institutions like this one are essential to so many of our citizens and
communities. As regulators, we need to ensure that we are not imposing unnecessary burdens
on community banks. That is why one of my priorities as a Governor has been to appropriately
tailor our supervision and regulation to the size, complexity, capacity, and risks posed by an
institution.
To further this effort, I recently formed a working group of experts from across the Federal
Reserve System to launch a comprehensive review of our supervisory work with smaller regional
and community banks. While serving as the Kansas State Bank Commissioner, I was
committed to treating every consumer and institution fairly and respectfully and fostering open
communication. This working group will follow those same principles. We are looking for ways to
optimize our supervision and regulation to ensure it adapts to the on-the-ground realities of an
evolving industry and changing consumer expectations while maintaining the safety and
soundness of our banking system.
Let me close by saying a few words about monetary policy and the Federal Reserve's dual
mandate. As a community banker, it was my job to support local businesses and consumers. I
draw upon this experience often when thinking about monetary policy, because it has given me a
personal and practical understanding of how the Federal Reserve's goals of fostering maximum
employment and stable prices directly affects individuals as well as the broader financial system
and economy. The Congress has given the Federal Reserve independence to pursue these
goals, because our work is critical to our economy, to businesses, to families, and to
communities. I am deeply committed to fulfilling this mandate.
If confirmed by the Senate, I will continue the important work I have begun and be committed to
accountability, transparency, and clear communication in all of my responsibilities at the Federal
Reserve. Thank you for the honor of this hearing, and I look forward to answering the
Committee's questions.