Governor Michelle W. Bowman recently addressed key economic and banking challenges at the 2024 CEO and Senior Management Summit. She acknowledged progress in reducing inflation but warned it remains above the 2% target. While economic activity shows signs of moderation, Bowman is cautiously optimistic that inflation will continue to decrease under current monetary policies.
On the banking front, Bowman highlighted the critical role of culture in ensuring compliance and risk management. She pointed to recent failures, such as Silicon Valley Bank, as examples of cultural shortcomings within both banks and regulatory bodies like the FDIC. Bowman emphasized the necessity for strong leadership to foster a positive and accountable culture to avoid systemic risks.
Additionally, she discussed the ongoing risks to inflation from supply chain disruptions, fiscal policies, and housing market pressures, especially due to increased immigration. Labor market uncertainties were also noted, with Bowman stressing the importance of closely monitoring economic data for future policy decisions.
Finally, Bowman reiterated the Fed’s commitment to a data-driven approach in monetary policy, emphasizing patience and the need for careful adjustments to achieve stable prices and maximum employment.
this territory is moderated
She pointed to recent failures, such as Silicon Valley Bank, as examples of cultural shortcomings within both banks and regulatory bodies like the FDIC. Bowman emphasized the necessity for strong leadership to foster a positive and accountable culture to avoid systemic risks.
Cultural shortcomings? How about fiduciary or moral shortcomings?!
This is why Bitcoin is peer-to-peer, permission less and trustless!
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I may be misreading the tea leaves, but I took that comment to mean that they shouldn't be expecting to get bailed out: "If you go under, it was your own fault, so get your shit together."
They must be really worried about contagion and moral hazard.
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No financial manager should be expecting to get bailed out!
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I agree if you mean "should" in a moral sense, but not if you mean "should be expecting" in a purely predictive sense.
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Do you understand fediciary responsibility?
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You're supposed to pursue the greatest value for your shareholders. That implies making really risky high-upside decisions, if you have a high likelihood of being bailed out in the event of a loss.
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Ok, you line of thinking makes sense. You are using a very limited definition of the term. This is far more expansive than the definition you give and it is an actual legal definition.
Fediciary responsibility means you act for the client first. This means they are legally responsible to meet the expectations you describe.
The point I have tried to make is our point is the same if you use the fuller definition.
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It's a bit like how treason is only treason if your side loses.
... and 'strong leadership' lool
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Can this speech tell us that it is possible that the decline in interest rates will be delayed? Almost all analysts say that in September interest rates will almost certainly be lowered by at least 50 points.
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32 sats \ 1 reply \ @TomK OP 10 Aug
If I summarize everything that has been said and written in the last few days, I would say at this point in time that they will cut exactly 25 basis points or not at all. But it doesn't matter, because the bond market is already cutting rates.
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I understand, thank you for your insight
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The entire reason we had high inflation was because of central banking in the first place. Bitcoin will end the Federal Reserve Bank both here in the U.S. & ones around the global over the next century.
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On the banking front, Bowman highlighted the critical role of culture in ensuring compliance and risk management.
I hate politician because they think they were elected to tell the the people about compliances instead of thinking and planning for people's welfare!
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