Federal member Bowman: Inflation risks remain high amidst the halt in progress towards the goal.

A member of the U.S. Federal Reserve Bank in Kansas and voting member of the Federal Open Market Committee, Esther George, made some comments on monetary policy and economic conditions in the United States during her speech in Laguna Beach, California, on Thursday.

The key comments from Bowman’s speech are as follows:

• The Federal Reserve must be cautious in its assessment of changes affecting interest rates.
• I view the Federal Reserve's decision to lower interest rates at the December meeting as a "final step" to confirm the recalibration of monetary policy.
• I could have supported no action on the monetary policy stance in December, given the lack of progress on inflation and continued strength in the economy, but that scenario carried high risk.
• I prefer a cautious and gradual approach to adjusting monetary policy.
• The current stance of monetary policy may not be as restrictive as others might perceive.
• We should refrain from judging upcoming monetary policy moves until we see the conditions surrounding the decision.
• Inflation is still high, and there are upward risks to it, especially given the halt in its progress toward the 2% target.
• Wage growth remains above the rate of consumer price growth, which is inconsistent with the inflation target.
• I currently see greater risks facing the U.S. Federal Reserve in achieving its inflation mandate than the risks to jobs.
• Regulatory bodies should adopt a more pragmatic approach to policymaking.

It is worth noting that it was announced earlier this week that Bowman is the leading candidate to take on the role of bank supervision at the U.S. Federal Reserve.