The main long-run contribution monetary policy can make is to provide a stable macroeconomic and financial environment.
It is worth noting that 'too big to fail' is not simply about size. A big institution is 'too big' when there is an expectation that government will do whatever it takes to rescue that institution from failure, thus bestowing an effective risk premium subsidy. Reforms to end 'too big to fail' must address the causes of this expectation.
The Federal Reserve seeks to support MDIs in a number of ways, including our Partnership for Progress, our program for outreach and technical assistance to MDIs.
The Federal Reserve and other central banks have adopted broad public policy objectives to guide the development and oversight of the payments system. At the Fed, we have identified efficiency and safety as our most fundamental objectives, as set forth in our Policy on Payment System Risk.
The TMPG is the place where market participants recognize and address their responsibilities to each other.
Long-term economic growth depends mainly on nonmonetary factors such as population growth and workforce participation, the skills and aptitudes of our workforce, the tools at their disposal, and the pace of technological advance. Fiscal and regulatory policies can have important effects on these factors.
With customers' permission, fintech firms have increasingly turned to data aggregators to 'screen scrape' information from financial accounts. In such cases, data aggregators collect and store online banking logins and passwords provided by the bank's customers and use them to log directly into the customer's banking account.
As with so many sectors of the economy, technology is transforming the retail banking sector.
In a world of global trade and integrated capital markets, it is natural for economic and financial shocks and policy actions to be transmitted across borders.
The Federal Reserve is committed to fulfilling our statutory mandate of stable prices and maximum employment.
Loss-absorbing capacity among banks is substantially higher as a result of both regulatory requirements and stress testing exercises.
My own experience is that the best outcomes are reached when opposing viewpoints are clearly and strongly presented before decisions are made.
