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 in accord with its dual mandate from the Congress to promote price stability and maximum sustainable employment in the United States. To help meet these objectives, officials of the Federal Reserve regularly consult with representatives of other central banks. These consultations allow policymakers to share their thinking, compare analyses, and stay informed of developments around the world. Such contacts also help central banks move quickly when shared problems call for swift joint responses. During the recent financial crisis, for example, central banks provided crucial support to the global economy and financial system through a coordinated cut in interest rates and the creation of dollar liquidity swap lines to keep money markets functioning.
The increasingly globalized nature of the financial system also creates 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.