By Selena Li
BANGKOK, Oct 14 (Reuters) – The US Federal Reserve has time to wait and see how financial markets and the economy evolve after its September rate rise before deciding whether to take any more action, its Vice Chair for supervision Michelle Bowman said on Wednesday.
“I don’t feel any urgency for taking further action at this point, we really need to take some time and understand how things will evolve,” Bowman said during the IMF-World Bank meetings in Bangkok.
The Fed raised its policy rate by a quarter of a percentage point to a 3.75%-4.00% range last month.
Bowman’s comments came after Boston Federal Reserve President Susan Collins on Tuesday said she believes the US central bank will need to raise rates again before the end of this year to bring down high inflation.
Separate from the debate over AI-driven cybersecurity risks to banks, Bowman said the central bank also considers the actual capital used in the creation and construction of data centers, from banks and other funding sources.
“We need to make sure that there’s capital to support the future economy, again through how we’re approaching supervision and regulation in the banking system,” she said.
Bowman also called for a “complete reorganization” to improve supervision and boost accountability within the Fed in the wake of the Silicon Valley Bank collapse, following a review of the bank’s 2023 failure she commissioned.
(Reporting by Selena Li and Martin Petty; Editing by David Stanway and John Mair)
