While its true that regulators were likely operating far from the optimal tradeoff between...

|By:, SA News Editor

While its true that regulators were likely operating far from the optimal tradeoff between stability and effiency in recent years, Fed's Yellen says in Hong Kong this morning, in designing a new framework, "we must be aware that stronger capital standards that reduce leverage might hamper the flow of funds to businesses and households in ways that could impede investment and consumption. Of course, finding the right balance is an immense challenge."