In July, the Federal Reserve, the OCC, and the FDIC published for comment proposed guidance for banks managing the risks of third-party relationships, including those with fintechs. This guidance should reduce unnecessary burden by eliminating variation in supervisory views. It is also my hope that this guidance will better address the landscape of the third-party relationships that exist today.
Like the option of a fiscal contraction, the imposition of taxes on capital inflows would force a reduction in domestic spending and would need to be large enough to tighten policy to offset the inflationary impact of eased policy rates.