FSOC Basics: Who and What
The FSOC sprang from Dodd-Frank in 2010, intended to monitor risks to U.S. financial stability.
This year's report? Approved mid-December. Focuses on activities, market developments, threats, and recommendations.
Core Message: Stability = Growth + Security
Financial stability isn't just avoiding crashes. It demands economic growth and security.
- Growth Angle: Rising output eases debt, boosts loans, strengthens fiscals. Regulations often ignore this, focusing on isolated costs. FSOC vows to review burdens that kill growth.
- Security Angle: Echoes the NSS definition (Trump's Monroe 2.0). Secure domestic production, global resources, living standards, national values. Finance must fuel this. Tech like AI bolsters defenses.
This shifts FSOC's lens from pure risk-hunting to a growth/security prism.
New Priorities in Action
FSOC launches working groups for 2026. Operationalizes the vision.
- Market Resilience: Watches Treasury, funding, equity, credit. Cuts regulatory distortions. Ensures markets fuel growth without fragility.
- Household Resilience: Tracks family finances, borrowing, housing costs. Strong households mean resilient economy, entrepreneurship, investment.
- AI Group: Promotes AI for efficient regulations and supervision. Monitors risks. Public-private discussions to ditch barriers.
- Crisis Prep: Preparations for cyber attacks, quantum threats, geopolitics. Ties to NSS's tech/geopolitical focus.
Ongoing: Systemic Risk Committee for events. FMU Committee for payments/clearing.
How It Backs Trump's NSS
NSS slams post-Cold War overreach. Pushes America First: Rebuild strength, end endless burdens, focus core interests, Western Hemisphere.
FSOC delivers the financial how-to.
- Economic Security Sync: Uses NSS's exact definition. Maps it to finance. Ensures system supports production, standards, values.
- Growth Push: Aligns with NSS's tariffs, energy boom, domestic industry revival. FSOC reviews regulaions to avoid growth drags.
- Household Focus: Bolsters NSS's resilient America. Healthy families drive sustainable output.
- Tech/Threat Defense: Mirrors NSS priorities on cyber, AI, geopolitics. Finance as shield.
Bottom Line: FSOC turns NSS ideals into finance policy. Issued right after NSS = quick alignment under Trump. Watch this for investment edges in a secure, growing economy. Refer back when regulations shift or threats loom.

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