The importance of maintaining monetary policy focused on domestic objectives, however, rules out, in my view, assigning monetary policy the objective of maintaining exchange rates within target zones. Frankly, given the volatility of international capital flows, I doubt we could accomplish such an objective even if we assigned monetary policy with the responsibility to enforce such an agreement.
It provides the Federal Deposit Insurance Corporation (FDIC) with the authority to resolve any firm whose failure would pose substantial risks to our financial system, in a way that will protect the economy while ensuring that large financial firms—not taxpayers—bear any costs.