Fed’s Brainard: Fed exploring targeting margin requirements

Fed Governor Brainard speaking financial stability:

• Fed exploring the use of bank stress tests and margin requirements to target asset bubbles in specific sectors
• Other regulators need to cooperate on financial stability because limits of Fed authority
• Central bank still in early stages of developing possible macroprudential tools

She will take audience questions later so there may yet be a comment on the outlook, although usually when a speech starts with regulation, there’s nothing else.