How does the Federal Reserve cooperate with foreign policymakers to promote economic growth and financial stability?

The Federal Reserve conducts its monetary policy independently and in accord with its dual mandate from the Congress to promote price stability and maximum sustainable employment in the United States. To help meet these objectives, officials of the Federal Reserve regularly consult with representatives of other central banks. These consultations allow policymakers to share their thinking, compare analyses, and stay informed of developments around the world. Such contacts also help central banks effectively address shared problems that call for swift joint responses.

U.S. banks also do business overseas, and developments in markets around the world can affect the U.S. economy, creating a need for international cooperation in the area of financial supervision and regulation. The Federal Reserve works closely with foreign regulators and supervisors, and it actively participates with international colleagues in the Financial Stability Board and in standard-setting bodies associated with the Bank for International Settlements, including the Basel Committee on Banking Supervision.

 

Related Information

Basel Committee on Banking Supervision

Financial Stability Board

Related Questions

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Last Update: July 11, 2024