Center for Financial Innovation and Stability

The purpose of the Center for Financial Innovation and Stability is to improve knowledge of financial innovation and financial stability as well as the connection between the two, especially as it pertains to Federal Reserve policymaking.


Features
Market Expectations of Fed Policy: A New Tool

Market Expectations of Fed Policy: A New Tool

The market's view of the path of Federal Reserve monetary policy has an important impact on the term structure of interest rates and asset prices in general. This Notes from the Vault post discusses a new Atlanta Fed tool that uses Eurodollar options prices to infer market expectations about future short-term rates.
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Forecasting Loan Losses for Stress Tests

Forecasting Loan Losses for Stress Tests

Even with all the tools at regulators' disposal, assessing banks' ability to withstand severe shocks is an imperfect science—but an essential undertaking. A new macroblog post examines some approaches that could permit more robust forecasts of severe economic shocks' effects on the financial system.
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