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Nuggets from the Fed’s new Financial Stability and Supervision & Regulation reports
The Federal Reserve’s inaugural reports on Financial Stability and Supervision & Regulation offer a useful peek into Fed thinking and underscore the Fed’s responsibilities for more than inflation and unemployment. The reports didn’t get much attention because they didn’t seem to say much new, didn’t shout about some otherwise unnoticed risk and were written cautiously. Instead, they focused on identifying and measuring vulnerabilities that if elevated could lead to problems for the economy in times of stress.
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