We have also created a Model Validation Council made up of outside experts to provide independent views and advice.10 The third important effect of the supervisory stress tests and CCAR has been to pave the way for other horizontal, simultaneous supervisory exercises.
The US Fed has increased the fed funds target rate to its current level of 5,0 per cent, from 1,0 per cent at the start of the tightening cycle, and the general expectation is that it might be close to its peak.