Fed’s Bowman emphasizes importance of central bank independence

Published 22/07/2025, 13:26
© Reuters.

Investing.com -- Federal Reserve Vice Chair for Supervision Michelle Bowman stressed Tuesday that the central bank’s ability to set monetary policy without political interference is "very important."

"It’s very important ... that we maintain our independence with respect to monetary policy," Bowman said in a CNBC interview before hosting a conference on bank regulation at the Fed.

Bowman, who was appointed to the Fed Board of Governors by President Donald Trump in 2018 and recently promoted to top banking regulator, added that independence comes with responsibilities.

"But we also, as part of that independence, have an obligation for transparency and accountability as well. But we also have an obligation, in my view, as we have throughout my time on the board here since 2018, to listen to a broad range of voices to understand how others are viewing the economy and how that should influence our decisions in monetary policy making," she said.

Her comments come as Trump has increased his criticism of the Fed and its Chair Jerome Powell for not cutting interest rates as the president desires.

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