Fed board member calls for flexibility

Policymakers need to respond to the changing financial market-place by developing common, principles-based risk approaches, according to Kevin Warsh, member of the Board of Governors of the US Federal Reserve System.

Speaking at the European Economics and Financial Centre in London, Warsh said that innovations in financial products and practices, combined with strong liquidity, have altered the role of financial intermediaries. The changes they are undergoing are profound and permanent, he be

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