Federal Reserve Vice Chair Bowman said there was time to assess developments in financial markets and the economy following the previous rate hike, and that she did not feel it necessary to rush into further action.
Speaking at the IMF–World Bank meetings being held in Bangkok, Vice Chair Bowman said there was no need at present to rush into additional measures. She said the situation should be assessed over time to determine how it develops.
She said the discussion should also look beyond AI-related cybersecurity risks in banking to the sources of funding that supply capital for data-center development and construction. She said it was necessary to secure the funding needed to support the future economy through supervision and regulation of the banking system.
In light of the 2023 failure of Silicon Valley Bank, which she led and directed, she called for a sweeping organisational restructuring to improve supervision and strengthen accountability within the Fed.