Fed's Kohn on managing risk

In the speech 'Managing risk in a changing economic and financial landscape' given on 15, June Donald Kohn of the Federal Reserve said the US current account deficit and surge in house prices may not be sustainable and urged banks to protect themselves against unlikely but potentially harmful events.

"Our economy is in unexplored territory in many respects," he said in remarks to the Bankers Association for Finance and Trade and the Institute of International Bankers.

"The risk of rapid

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