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 to satisfy its dual mandate from Congress to promote price stability and maximum sustainable employment in the United States.
At the same time, Federal Reserve officials do consult with representatives of other central banks, and 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
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How does the foreign exchange value of the dollar relate to Federal Reserve policy?