Michelle Bowman, a member of the Federal Reserve System’s Board of Governors, spoke about cryptocurrency, the US economy, and the Fed’s efforts to reduce inflation on Tuesday at a Florida Bankers Association Leadership event in Miami.
Because of the significant risks that these activities may pose, the Fed and other banking agencies will maintain their focus in this area. But, in the end, we don’t want to stifle innovation.
“By inhibiting innovation, we could be pushing growth in this space into the non-bank sector, leading to much less transparency and potential financial stability risk. “We’re thinking about some of these issues and how a regulatory approach might look,” she said.
Governor Bowman stated that she has supported the Federal Open Market Committee’s (FOMC) recent policy actions to combat high inflation. “I am committed to taking additional actions to return inflation to our target,” she stated emphatically.
