The Federal Reserve Board’s community banking representative is “deeply committed” to the central bank’s dual mandate of maximum employment and price stability, according to her written statement for Wednesday’s Senate Banking Committee hearing on her renomination to a full 14-year board term.
Michelle Bowman was confirmed last year to complete the remainder of a Fed Board term that ends next January. She is the first Fed governor to be specifically designated as the board’s community banking representative. Renominated recently to a full, 14-year term on the board by President Donald Trump, Bowman is slated to testify in a Senate Banking hearing Wednesday on her and other federal agency nominees that is slated to begin at 10 a.m. ET.
Regarding the Fed’s dual mandate, Bowman, in her written witness statement, says her experience as a community banker provides her with 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.” She adds, “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.”
She also addresses the Fed’s supervision, noting she has recently formed a working group of experts across the Fed system to undertake a “comprehensive review” of the Fed’s supervisory work with smaller regional and community banks. “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,” she states.
Bowman’s current term on the Fed Board expires next January. If confirmed to a full 14-year term, Bowman could remain on the Fed Board through January 2034.
Statement by Michelle W. Bowman Before the Senate Banking Committee June 5, 2019