Also countries with a floating exchange rate conduct an exchange rate policy. There are three reasons for this. First, exchange rate markets are prone to episodes of overshooting and undershooting. Public intervention – in the form of public statements or even outright interventions in FX markets – may thus be warranted.
Concern was expressed that without an operational presence, the Federal Reserve would have to regulate the retail payments system more extensively to ensure that all banks had access to the services. While not unanimous, there was strong support from institutions of all sizes for continued Federal Reserve provision of retail payment services.