The Federal Reserve is still working out how best to supervise large financial institutions whose failure could cause domino effects across the financial system, Federal Reserve Chairman Ben Bernanke said on Friday.
Bernanke, in brief introductory remarks to a conference on central banking, did not say anything about the outlook for the economy or monetary policy. Analysts are watching particularly keenly for any sign the Fed may be considering pulling forward from late 2014 the timing of reversing ultra-low interest rates in light of surprisingly good signs about the recovery.
The Fed and other regulators are still working out how to use new authority they have been given following the 2007-2009 financial crisis, Bernanke said.
Although much progress has been made, we are still at an early stage of understanding how best to meet these new macroprudential responsibilities, he said.
(Reporting by Mark Felsenthal; Editing by James Dalgleish)