WASHINGTON (Reuters) - The U.S. Federal Reserve Board has expanded its office focused on financial policy and research into the Division of Financial Stability, a result of its growing task to pinpoint vulnerabilities in the country’s financial system, it said on Wednesday.
“The change reflects the growth in responsibilities and staffing associated with the board’s commitment to identifying and analyzing risks to financial stability and to developing and evaluating macroprudential policy responses to those risks,” it said in a statement.
The division will continue coordinating the board’s work on financial stability and on how the central bank can carry out its mandate under the direction of economist Nellie Liang, who established the office in 2010, according to the statement. It will conduct research and monitor banks and markets.
The Federal Reserve is part of the Financial Stability Oversight Council, a collection of U.S. regulatory agencies created by the 2010 Dodd-Frank Wall Street reform law that is charged with heading off threats that could lead to another financial crisis.
Reporting by Lisa Lambert; Editing by Meredith Mazzilli