stability risks, while recognizing the costs of over - regulation. closing we have a dynamic financial system in the united states, a system that has long been supported by having independent and accountable regulators. as the financial system has evolved over time, so has the regulatory and supervisory framework designed to further the goals of safety and soundness, and financial stability. in my view, it is important that we continue to emphasize the value of accountability and transparency, while continuing to improve the fairness and efficiency of this framework. 6 / 7 bis - central bankers'speeches 1 these views are my own and do not necessarily reflect those of my colleagues on the federal reserve board or the federal open market committee. 2 chair jerome powell, " panel on central bank independence and the mandate - evolving views " ( pdf ) ( speech at the symposium on central bank independence, sveriges riksbank, stockholm, sweden, january 10, 2023 ). 3 see, e. g., 12 u. s. c. 1842 ( b ) ( 1 ) ; 4807 ( a ). 4 see banking applications activity semiannual report ( pdf ), january 1 - june 30, 2022, vol. 9, no. 2, table 1, " dispositions and processing times of proposals, 20182021 and 2021 : h1 and 2022 : h1 " ( december 2022 ). 5 economic growth, regulatory relief, and consumer protection act, pub. l. no. 115 - 174, 132 stat. 1296 ( 2018 ) ; chris dodd and barney frank, interview by david brancaccio, marketplace, september 12, 2018 ; daniel k. tarullo, " departing thoughts " ( speech at the woodrow wilson school, princeton, nj, april 4, 2017 ) ; randal k. quarles, " between the hither and the farther shore : thoughts on unfinished business " ( speech at the american enterprise institute, washington, dc, december 2, 2021 ). 7 / 7 bis - central bankers'speeches

michelle w bowman : independence, predictability, and tailoring in banking regulation and supervision remarks by ms michelle w bowman, member of the board of governors of the federal reserve system, at the american bankers association community banking conference, orlando, florida, 13 february 2023. * * * i would like to thank the american bankers association for the invitation to speak to you today. it is a pleasure to be with you and to have the opportunity to share some of my views on banking regulation and supervision. of course, as you know, the federal open market committee ( fomc ) recently held its first meeting of the year. so, before getting into the substance of my remarks, i'll provide some brief thoughts on the economic outlook and monetary policy. 1 monetary policy let me begin with the fomc's effort to lower inflation, which continues to be much too high. stable prices are necessary for a healthy economy and to support a labor market that works for everyone. as a member of the fomc, i remain focused on bringing inflation down to our 2 percent goal. over the past year, the committee has taken forceful actions to address unacceptably high inflation by significantly raising the federal funds rate and reducing our balance sheet holdings of treasury and agency mortgage - backed securities. at our most recent meeting, we continued on that path by further increasing the target range for the federal funds rate by 25 basis points to 4 - 1 / 2 to 4 - 3 / 4 percent. i expect that ongoing increases will be appropriate to bring the federal funds rate to a sufficiently restrictive level and that it will need to remain there for some time to restore price stability. the economic outlook and the outlook for inflation continue to be highly uncertain. global and domestic factors are contributing to heightened uncertainty, and i expect that we will continue to be surprised by economic and geopolitical developments and by the incoming data. while we have seen modestly lower inflation readings in recent months, overall inflation remains high. measures of core services inflation have been persistently elevated, and labor demand exceeds the supply of available workers, which is leading employers to increase wages in an effort to retain and attract workers. the ongoing tightness in the labor market puts upward pressure on inflation, even if some components of inflation moderate due to improvements in supply - side factors. the longer high inflation persists, the more likely it is that households and businesses may come to expect higher inflation in the longer term. should that be the case,