Edward M Gramlich: Reducing budget deficits Remarks by Mr Edward M Gramlich, Member of the Board of Governors of the US Federal Reserve System, at the Concord Coalition Budget and Fiscal Policy Conference, Washington, DC, 24 June 2004. *  *  *  Thank you for inviting me to speak today.
The implication is that a central bank must take into account risks to financial stability if it is to help achieve good macroeconomic performance. Today, the Federal Reserve sees its responsibilities for the maintenance of financial stability as coequal with its responsibilities for the management of monetary policy, and we have made substantial institutional changes in recognition of this change in goals.