U.S. Secretary of the Treasury Janet L. Yellen convened a meeting of the Financial Stability Oversight Council (Council) on October 18, 2024, at the U.S. Department of the Treasury. The meeting was held in executive session.
During this session, updates were provided by staff from the Office of the Comptroller of the Currency and Board of Governors of the Federal Reserve System regarding developments in banking and commercial real estate. The Council discussed proactive management by depository institutions concerning economic and interest rate changes, as well as efforts to enhance resilience planning. There was also a focus on monitoring credit conditions and assessing how interest rates affect banks' net interest margins, deposit flows, and fair-value losses on securities.
Federal Housing Finance Agency (FHFA) staff updated the Council on a proposed rule to give Federal Home Loan Banks more flexibility in managing intraday liquidity. Guidance for enhancing credit risk management practices and liquidity access for members was also discussed.
Treasury staff presented information on short-term investment vehicles (STIVs), which have grown their assets under management recently and play a key role in short-term funding markets. The Council reviewed STIVs' performance during past stress events and ongoing regulatory efforts to bolster market resilience.
The meeting included an update from Treasury staff about regulators' attempts to improve transparency in private credit markets. Members noted challenges due to limited visibility into this sector's risks but discussed agency efforts to better monitor it.
An update on developing the Council’s 2024 annual report was also shared by Treasury staff, followed by approval of minutes from its previous meeting held on September 20, 2024.
Members attending either physically or virtually included Janet L. Yellen; Jerome H. Powell; Michael J. Hsu; Rohit Chopra; Gary Gensler; Martin Gruenberg; Rostin Behnam; Sandra L. Thompson; Todd M. Harper; Thomas Workman; James Martin (non-voting); Steven Seitz (non-voting); Elizabeth K. Dwyer (non-voting); Adrienne A. Harris (non-voting); Melanie Lubin (non-voting).
Further details about the Council's work and approved minutes can be found at http://www.fsoc.gov.
