Three big questions for the FOMC Because the course of the economy is uncertain, monetary policymakers need to carefully watch for signs that it is diverging from the baseline outlook and then respond in a systematic way.
Reducing Systemic Risk through Improved Supervision Finally, the Federal Reserve must continually improve the bank supervisory process in order to help manage risk that could be introduced into the financial system by the changes occurring in the financial sector. The effects of consolidation and conglomeration on systemic risk cannot be ignored.