In addition, to reduce uncertainty in response to a shock, we need to strengthen those increasingly critical institutions at the core of the system. Because of their systemic importance, they must be held to higher capital, liquidity, and risk-management standards.
The Federal Reserve's recent policy actions are intended to help lower macroeconomic risk and thereby improve the functioning of financial markets. In addition, our enhanced communications will help reduce macroeconomic risk by providing additional information regarding our policy strategy and our assessment of the economic outlook.