MNI BRIEF: Fed's Bowman Emphasizes Regulatory Fix To Markets
Bowman was speaking at Chicago Booth conference on market function.
Federal Reserve Governor Michelle Bowman Friday emphasized the need for central banks and other agencies to ensure that regulations and market oversight foster prudent financial institution behavior and resiliency in core financial markets.
"It is important for the Federal Reserve to engage along with the other agencies in a thoughtful consideration of possible regulatory adjustments and structural reforms to increase the resiliency of the Treasury markets and reduce the likelihood of future market dysfunction," Bowman said in prepared remarks at a Chicago Booth conference on market dysfunction. "Doing so can increase the ability of private markets and institutions to function during times of stress and reduce the likelihood of future market interventions by the central bank."
Bowman, who repeated colleagues' calls for bond market reform, struck a slightly different tone in her remarks by emphasizing regulatory change to support markets. The Fed governor has warned of the costs of overregulation of large banks in past speeches as the central bank conducts a holistic review of bank capital requirements.