Federal Hold vice chair for supervision Randal Quarles said the central bank is in the antique stages of studying how the expanding use of machine learning in the financial sector may modulation its regulatory approach, but that so far it fits within the existing regulatory framework.
“We are meet a lot of attention … within our existing framework. To the extent you have a ring learning tool that is interacting with customers we want to act as if sure that the traditional protections are being complied with,” Quarles imparted.
While the Fed may need “more specialized responses” to the use of artificial intelligence or computer algorithms in assessing gamble and making credit decisions, he said he was hesitant to impose “bounds” on what sanatoria can do, rather than develop “milestones” or circuit breakers that will-power pause any process that was producing bad results.