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What significance does financial stability have in the Federal Open Market Committee’s monetary policy discussions?
Deutsche Bundesbank
2026.07.16
Financial stability has grown in importance for central banks since the Global Financial Crisis (GFC) of 2007?09. This edition of our research brief explores how the Federal Reserve’s Federal Open Market Committee incorporates financial stability into its monetary policy deliberations in order to fulfil its mandate objectives. We show that discussions on financial stability during the low interest rate period (2009?15)???a period during which the federal funds rate was at the zero lower bound???played a part in the tightening of monetary policy. The monetary policy communications, meanwhile, focused on the mandate objectives.