The Federal Reserve has recently issued regulations that prohibit consumers from being automatically enrolled in overdraft programs for overdrafts created by automated teller machine withdrawals and one-time debit card transactions. In addition, new disclosures are required to help consumers understand the associated costs before they choose to opt into overdraft coverage.
By fostering fiscal discipline, it contributes substantially to the noninflationary growth potential of the euro area. Prudent fiscal policies reduce the debt-to-GDP ratio and, consequently, the interest burden on governments; they increase investors’ confidence in the euro area, keep interest rates lower than they would otherwise be, and lead to a crowding-in of private investment.