Waller: Financial Stability and Macroeconomic Policy

From federalreserve.gov

I have been asked to talk about monetary policy and financial stability in today's economic environment.1 The recent stress in the U.S. banking system has brought these two topics, their interlinkages, and the tools we use to achieve our goals to the forefront of central bank policy and public discourse. In short, although financial stability and monetary policy tools are used independently, they are nevertheless interconnected via their respective effects on the macroeconomy. So let me take a few minutes to discuss this topic in more detail. Financial stability is essential for monetary policy in the United States ... (full story)