The bottom line is that developing an effective macroprudential policy is critical to preserving financial stability and supporting overall U.S. economic activity. Accomplishing this objective will be a considerable challenge, but it is one of great importance. 6  BIS central bankers’ speeches
Japan’s experience illustrates the challenges associated with such a downward spiral. Today’s new normal calls not only for a broader set of tools, but also a different strategy. 6 We should clarify in advance that we will deploy a broader set of tools proactively to provide accommodation when shocks are likely to push the policy rate to its lower bound.