By more normal we mean within the range we consider for a neutral rate of interest that neither stimulates nor weighs on the economy. We estimate this rate to be between 2% and 3%. Two weeks ago, we raised the policy rate to 1%, still well below neutral. This is also below the pre-pandemic policy rate of 1.75%.
For release on delivery 9:00 a.m. EDT (8:00 a.m. CDT) May 19, 2023  Considerations for Revisions to the Bank Regulatory Framework  Remarks by Michelle W. Bowman Member Board of Governors of the Federal Reserve System at Texas Bankers Association Annual Convention  San Antonio, Texas  May 19, 2023  It is a pleasure to be here with you today.1 I am especially pleased to participate in this event focused on “Building Stronger Communities.” As a former banker, former state bank commissioner, and a member of the Federal Reserve Board that theme really resonates with me.