CLEVELAND (Reuters) – Cleveland Federal Reserve President Loretta Mester said on Thursday that financial firms and regulators should be more agile and share information to better combat cybersecurity threats.
Financial firms should be stress-tested to evaluate their ability to handle a cyber attack, Mester recommended according to prepared remarks to be delivered at a conference on financial stability hosted by the Cleveland Fed.
“Such a test could help evaluate the financial system’s plans for data and core systems recovery and its reliance on third parties to implement that plan,” she said according to remarks.
Mester also said that financial firms, government agencies and regulators need to collaborate better and share information when it comes to facing cybersecurity risks.
The Fed official did not comment on monetary policy during her prepared remarks. She previously said she opposed all three rate cuts approved this year but that she now felt monetary policy is in a good place.
Mester does not vote in monetary policy decisions but she does participate in deliberations. The Fed voted 8-2 to cut interest rates in October for the third time this year, bringing the target level to a range of 1.5% to 1.75%.
Reporting by Jonnelle Marte