Legislative reforms in the 1990s and the public/private structure led managements to expand the GSEs' balance sheets to enormous size, underpinned by wafer-thin slivers of capital, driving high shareholder returns and very high compensation for management. — Jerome Powell Copy Share Image
Alignment of business strategy and risk appetite should minimize the firm's exposure to large and unexpected losses. In addition, the firm's risk management capabilities… — Jerome Powell Copy Share Image
The too-big-to-fail reform project is massive in scope. In my view, it holds real promise. But the project will take years to complete. Success… — Jerome Powell Copy Share Image
The financial crisis and the Great Recession left firms with excess capacity, reducing incentives to invest. If businesses expect slower growth to continue, that… — Jerome Powell Copy Share Image
All economic forecasts are subject to considerable uncertainty. There is always a wide range of plausible outcomes for important economic variables, including the federal… — Jerome Powell Copy Share Image
Emerging market economies have long grappled with the challenges posed by large and volatile cross-border capital flows. — Jerome Powell Copy Share Image
A risk-insensitive leverage ratio can be a useful backstop to risk-based capital requirements. But such a ratio can have perverse incentives if it is… — Jerome Powell Copy Share Image
The Federal Reserve is not charged with designing or evaluating proposals for housing finance reform. But we are responsible for regulating and supervising banking… — Jerome Powell Copy Share Image
Although I have never worked in a community bank, I have been a customer, and I know from personal experience the special skills that… — Jerome Powell Copy Share Image
Perhaps the greatest challenge for the resolution of a systemic global bank is the possibility that public or private actors in different countries might… — Jerome Powell Copy Share Image
An efficient payments system provides the infrastructure needed to transfer money in low-cost and convenient ways. Efficient systems are innovative in improving the quality… — Jerome Powell Copy Share Image
Higher capital requirements increase bank costs, and at least some of those costs will be passed along to bank customers and shareholders. But in… — Jerome Powell Copy Share Image
