- Mon pol a possible tool to deal with broad sustained systemic risk
- Current financial risks do not warrant change to policy
- Cites high yield corp bonds & leveraged loans as risky areas
- Ad hoc supervisory actions have their limitations
- Urges better framework to judge tradeoffs between financial stability and reduced economic activity
- No new mandate needed to incorporate financial stability onto mon pol
- Possible that interest rates will remain historically low for some time after Fed starts to raise them
Daniel Tarullo is in charge of supervision and regulation at the Fed. Comments via Bloomers and Rtrs