Federal Reserve governor Daniel Tarullo said Thursday changing bond-market liquidity conditions remain unaccounted for, with uncertain implications for overall financial stability. Mr. Tarullo was addressing rising anxiety that changes in financial firms’ regulation, among other factors, is causing some companies to pull back from the bond market, in turn boosting the risk stress-driven volatility could cause harm to the economy as a whole. The official also took stock of the implementation of new rules aimed at strengthening the regulation of the financial sector, and he warned that leaders of financial firms need ... (full story)