"I believe a more macroprudential approach to supervision—one that supplements the supervision of individual institutions to address risks to the financial system as a whole—could help to enhance overall financial stability."
The global economy continues to slow. The world's largest economies are seeing their sharpest contractions in several decades, and many developing and emerging markets that showed resilience until late last year are now in decline. First quarter 2009 GDP growth numbers were dismal, and a further drop is expected for the remainder of this year.
"We are likely to see further sizable job losses and increased unemployment in coming months. However, the recent data also suggest that the pace of contraction may be slowing, and they include some tentative signs that final demand, especially demand by households, may be stabilizing."
On May 4, 2009, the Federal Reserve conducted an auction of $150 billion in 28-day credit through its Term Auction Facility. The results of the auction are listed on the Board's website.
The trimmed mean PCE inflation rate for March was an annualized 1.3 percent. According to the BEA, the overall PCE inflation rate for March was –0.3 percent, annualized, while the inflation rate for PCE excluding food and energy was 2.2 percent.
"Seeking Stability: What's Next for Banking Regulation?"—The chances for financial crises could be reduced if new standards for liquidity and leverage complement existing rules on bank capital, according to the April issue of Economic Letter.
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