Lenders must employ sound practices in managing interest-rate risk exposures, Don Kohn, the vice chairman of the Federal Reserve, has warned.

Kohn said the impact of an actual or expected tightening of monetary policy on interest rates across the maturity spectrum was always hard to predict, but especially so at present. He said the usual uncertainty about changes in policy interest rates was compounded by uncertainties related to the possible special effects of the historically low level of