12  That said, market expectations are not always well aligned with the Committee’s baseline outlook for the federal funds rate. Market participants may hold different views about the economic outlook and the associated risks and at times may be confused about the FOMC’s strategy.
Shadow banking In respect of the third theme, there have been considerable efforts by the FSB and the standard-setting bodies to address the risks posed by shadow banking – those entities and activities beyond the perimeter of prudential regulation.