IMF staff call on US to develop new macro-prudential tools
Assessment calls for tools that strengthen market resilience to run risks and fire sales
The Federal Reserve should not use interest rates to dampen financial stability risks for the time being, according to a staff report published by the International Monetary Fund today (July 7) that calls on the US to bolster its macro-prudential framework instead.
Staff encouraged the authorities to accelerate research on the "theoretical and empirical nexus" between interest rate changes and financial vulnerabilities, but defend against risks in other ways.
In particular, the report
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