* * * The monetary policy tightening started by the ECB in December 2021 has been crucial to respond to the risks stemming from high and rising inflation. Even before exerting its effects on aggregate demand, it has operated by contributing to containing inflation expectations, avoiding an increase to excessively high levels.
The standard to be applied by the FSOC is whether “material financial distress at the U.S. nonbank financial company, or the nature, scope, size, scale, concentration, interconnectedness, or mix of the activities of the U.S. nonbank financial company, could pose a threat to the financial stability of the United States.” 12 There follows a lengthy list of “considerations” to be taken into account by the FSOC.