Looks like the Fed wants to have even more power

Stanley Fischer.
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If recent speeches from prominent Federal Reserve officials are any indication, the U.S. central bank is feeling pretty emboldened.

Just as the Fed is getting ready to exit its controversial quantitative easing program, there's talk that it wants to expand its mandate to yet a third prong, which would see it assume responsibility for financial stability in addition to price stability and full employment.

New Fed Vice Chairman Stanley Fischer was explicit about the desire in remarks he gave last week, and Fed Chair Janet Yellen has commented about the need for "macroprudential policies" aimed at preventing instability caused by asset bubbles.

"It may well be that adding a financial stability mandate to the overall mandates of all financial regulatory bodies, and perhaps other changes that would give more authority to a reformed (Financial Stability Oversight Council), would contribute to increasing financial and economic stability," Fischer told the influential National Bureau of Economic Research during a presentation in Cambridge, Massachusetts.

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