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Financial stability

  • Research Department Working Papers

    Optimal Foreign Reserve Intervention and Financial Development

    This paper documents evidence of a U-shaped relationship between financial development and the adjustments of foreign exchange reserve holdings in response to a U.S. interest rate increase.

  • Speech by President Lorie Logan

    Keynote speaker introduction for the Chicago Payments Symposium

    Dallas Fed President Logan shares an overview of how the Federal Reserve is working to modernize and innovate the payments system.

  • Speech by President Lorie Logan

    Why I’ll be cautious about further rate cuts

    While the labor market has undeniably slowed, not all of the slowing represents economic slack, and inflation remains persistently above target.

  • Speech by President Lorie Logan

    The case for modernizing the FOMC’s operating target rate

    The time has come for the FOMC to prepare to target a different short-term interest rate. A repo rate would provide a more robust target than the current fed funds target.

  • Bubble thought: What beliefs can reveal about housing market risks

    Survey-based forecast data on home price growth are a surer indicator of housing market exuberance than traditional valuation ratios, such as price-to-income or price-to-rent.

  • Research Department Working Papers

    Technology Providers and Financial Stability: Overview of Risks and Regulatory Frameworks

    Technology-focused Third-Party Service Providers (TPSPs) have become important players in the operations of financial institutions and the financial markets. This paper summarizes micro- and macro-prudential regulatory frameworks in place to address risks that TPSPs pose to the financial system.

  • Research Department Working Papers

    Bubbling Up? What Consumer Expectations Reveal About U.S. Housing Market Exuberance

    This paper investigates the presence of speculative bubbles in the U.S. housing market after the global financial crisis. Unlike standard approaches that rely on observed economic fundamentals, the method used in this paper leverages subjective price expectations from the University of Michigan Survey of Consumers to test for exuberance without imposing a specific model of intrinsic housing values.

  • Speech by President Lorie K. Logan

    Opening remarks for panel titled ‘The increasing role of nonbank institutions in the Treasury and money markets’

    As moderator of a panel discussion, Dallas Fed President Logan gathered industry experts’ views on the role of nonbank institutions in Treasury and money markets and how to enhance these markets’ resilience.

  • Research Department Working Papers

    Asset Manager Commonality and Portfolio Similarity

    Asset managers are increasingly influential in financial markets. This paper uses new regulatory as well as manually collected data on asset managers of life insurers, the largest institutional investors of corporate bonds, and finds that insurers with the same asset managers have more similar portfolios and trades.

  • Speech by President Lorie K. Logan

    Efficient and effective central bank balance sheets

    At a Bank of England conference on central bank balance sheets, President Lorie Logan laid out two key principles: efficient and effective. It’s heartening that central banks around the world have converged on some approaches to uphold these twin principles.