Fed's Cook says big banks are resilient, vigilance is 'critical'

NEW HAVEN, Connecticut, March 26 (Reuters) - Federal Reserve Governor Lisa Cook said on Thursday that the largest U.S. banks have "very high levels of resilience," but added that policymakers need to be vigilant about monitoring risk and mapping out potential financial stability problems ahead of time.

"The tradeoffs between acting to prevent the worst near-term
effects at the cost of a larger Fed footprint and moral hazard are real," Cook said in remarks prepared for delivery at the Yale School of Management. "That is why properly undertaking scenario analysis in advance is a high priority."

Her prepared remarks did not touch on her views about monetary policy or the economic outlook.