The framework for assessing and communicating the risks to price stability Another important aspect related to the recent transformation in monetary policy concerns the ability of the central bank to present and explain to the public at large the analytical framework used by policymakers to continuously assess the flow of data, reach policy decisions and communicate them to the public.
With supervisory encouragement, large banking organizations have, for the most part, already significantly increased their liquidity buffers and are strengthening their management of liquidity risks. Beyond modifying applicable rules and standards, the Federal Reserve is revamping its approach toward supervising the largest financial institutions.