Fed consults over financial stability implications of commodities investment

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The Federal Reserve is seeking comments on how to grapple with financial firms' growing involvement in commodities markets, over concerns regarding the effects of natural disasters on financial stability, among others.

In an "advance note of proposed rulemaking" issued on Tuesday, the central bank asked for input to "help inform its consideration of physical commodity activities conducted by financial holding companies" – including whether additional restrictions are needed to ensure dealings

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