Powell speech Wednesday on ‘financial stability’ coincides with release of agency’s first report on the subject

The Federal Reserve’s first report on “financial stability” will likely be a major focus of remarks by the central bank’s board chairman Wednesday when he appears before the Economic Club of New York.

Federal Reserve Board Chairman Jerome (“Jay”) Powell

Jerome H. (“Jay”) Powell is scheduled to address a lunch-time gathering at the club beginning at noon, officially tagged as “The Federal Reserve’s Framework for Monitoring Financial Stability.” His remarks are scheduled to be webcast live.

In early November, the Fed announced its new report on financial stability would include an assessment of the resilience of the national financial system and key indicators related to main financial stability vulnerabilities. In that release, the Fed said the first report would be issued Wednesday (Nov. 28) and that the report is slated to be issued semiannually.

In its release earlier this month, the agency said the publication – the Financial Stability Report – will present the Fed Board’s view of the outlook for financial stability. Among the key indicators the report will track include: asset valuations, borrowing by businesses and households, leverage in the financial sector, and funding risks.

According to the release, the report is intended to “help the public and market participants understand and evaluate the Board’s assessment of financial stability conditions.”

One thing the report will not contain, the Fed said, are policy matters such as the annual determination of whether to activate the countercyclical capital buffer (CCyB). The Fed Board plans to conduct its annual review of the CCyB in January, according to the release.

Federal Reserve Board on November 28 intends to begin publishing semiannual report presenting Board’s assessment of financial stability conditions

Powell speech scheduled for Economic Club of NY