On the upside, the current market movements may help reduce the build-up of asset valuations that could contribute to financial market imbalances. We can also be assured that recent market volatility notwithstanding, our economy’s growth remains firm, underpinned by strong macroeconomic fundamentals, broad-based economic growth, manageable inflation, strong external payments position, sufficient fiscal space, as well as a sound and stable banking system.
While the Federal Reserve’s supervisory role will be less than that of the Office of the Comptroller of the Currency and the SEC, we will continue to work with the other implementing agencies to develop an effective and consistent supervisory framework and to ensure that the Volcker Rule is implemented in a manner that upholds the aims of the statute, while not jeopardizing important activities such as market making and hedging.