Fed Vice Chair Bowman Remarks **Overview** Federal Reserve Vice Chair for Supervision Michelle Bowman signaled a potential shift in policy outlook, emphasizing openness to future interest rate reductions should labor market conditions deteriorate. While characterizing the current policy stance as "moderately restrictive," Bowman highlighted diverging risks within the economic landscape. **Key Highlights** * **Monetary Policy Flexibility:** Bowman asserted that the central bank must remain agile, specifically remaining open to lowering rates if the labor market shows further signs of weakness. * **Dual Mandate Assessment:** Risks to the Fed’s dual mandate were described as uneven; while inflation continues to moderate, the employment sector is exhibiting increasing fragility. * **Market Valuations:** Bowman cautioned that equity valuations currently appear "stretched," suggesting potential overvaluation in financial markets. * **Regulatory Focus:** The Vice Chair outlined updated supervisory priorities for the banking sector, signaling continued regulatory scrutiny.