Regulatory changes have forced banks to closely examine their liquidity planning and to internalize the costs of liquidity provision. The costs of committed liquidity facilities will be passed on to clearing members. These costs are perhaps highest in clearing Treasury securities, where liquidity needs can be especially large. Jerome Powell Read Quote
Higher capital requirements increase bank costs, and at least some of those costs will be passed along to bank customers and shareholders. But in the longer term, stronger prudential requirements for large banking firms will produce more sustainable credit availability and economic growth. Jerome Powell Read Quote
Loss-absorbing capacity among banks is substantially higher as a result of both regulatory requirements and stress testing exercises. Jerome Powell Read Quote
The Federal Reserve and other central banks have adopted broad public policy objectives to guide the development and oversight of the payments system. At the Fed, we have identified efficiency and safety as our most fundamental objectives, as set forth in our Policy on Payment System Risk. Jerome Powell Read Quote
An efficient payments system provides the infrastructure needed to transfer money in low-cost and convenient ways. Efficient systems are innovative in improving the quality of services in response to changing technology and changing demand. Jerome Powell Read Quote
The Congress has tasked the Federal Reserve with achieving stable prices and maximum employment – the dual mandate. Jerome Powell Read Quote
Our discussions of the economy may sometimes ring in the ears of the public with more certainty than is appropriate. Jerome Powell Read Quote
My own experience is that the best outcomes are reached when opposing viewpoints are clearly and strongly presented before decisions are made. Jerome Powell Read Quote
Central banking often comes across as obscure and complicated, and we try to help the public understand what we do. Jerome Powell Read Quote
All economic forecasts are subject to considerable uncertainty. There is always a wide range of plausible outcomes for important economic variables, including the federal funds rate. Jerome Powell Read Quote
