WASHINGTON--A U.S. Federal Reserve official said on Friday there's scope to extend bank stress tests beyond the companies already involved in the process, and added that the central bank's new financial stability mandate needs to be made clearer.
The official, Federal Reserve Bank of Cleveland President Sandra Pianalto, didn't comment on monetary policy in remarks prepared for delivery at a conference on financial stability, held in Washington.
But she did say that the process the Fed is undergoing as it seeks to improve the stability of markets is akin to the learning curve it faced on the monetary policy front after the high inflation, weak job growth environment of the 1970s.
"The Federal Open Market Committee has had decades of experience" in implementing its mandate to keep price pressures contained and inflation under control, Ms. Pianalto said.
"By comparison, the Federal Reserve and other financial regulators are in the early stages of crafting a comprehensive approach to fulfilling the mandate of ensuring financial stability," she said.
nasdaq.com
The official, Federal Reserve Bank of Cleveland President Sandra Pianalto, didn't comment on monetary policy in remarks prepared for delivery at a conference on financial stability, held in Washington.
But she did say that the process the Fed is undergoing as it seeks to improve the stability of markets is akin to the learning curve it faced on the monetary policy front after the high inflation, weak job growth environment of the 1970s.
"The Federal Open Market Committee has had decades of experience" in implementing its mandate to keep price pressures contained and inflation under control, Ms. Pianalto said.
"By comparison, the Federal Reserve and other financial regulators are in the early stages of crafting a comprehensive approach to fulfilling the mandate of ensuring financial stability," she said.
nasdaq.com
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