RTTNews - Boston Federal Reserve President Eric Rosengren called Friday for the Fed to play an integral role in the financial regulatory framework of the United States.
Speaking at the Conference on Financial Markets and Monetary Policy Sponsored by the Federal Reserve Board and the Journal of Money, Credit, and Banking in Washington, D.C., Rosengren called for more preventative measures to be instilled.
Reform efforts will need to consider appropriate regulatory and supervisory measures to insure that financial markets can efficiently allocate capital without placing the economy, and taxpayers, at this degree of risk again, Rosengren said in prepared remarks.
In order to do so, lawmakers and policymakers must have a good understanding of the role of financial institutions and markets in the real economy.
And this, I firmly believe, means the Federal Reserve can and must play an integral role in the financial regulatory framework in the United States, he said.
The Boston Fed President urged additional research on the role of financial institutions and markets on the real economy, in light of the damage that has been inflicted during the current economic crisis.
He also discussed the stress tests conducted earlier in the year, calling them instructive to banks and supervisors.
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