WASHINGTON (MarketWatch) - New academic research is raising questions about the government's "one-size-fits-all" approach to regulation, said Federal Reserve Vice Chairman Janet Yellen on Friday. New research papers "suggest that detailed and comprehensive data on the structure of financial networks is needed to understand the systemic risks facing the financial system and to gauge the contributions to systemic risk by individual institutions," Yellen said in a speech to the American Economic Association meeting in San Diego. Economists have long stressed the benefits of interactions between firms, allowing them to share risks. But Yellen said that new research suggests that complex linkages can be "devastating" during a financial crisis by making it more difficult for firms to react to events.

Louis Federal Reserve President James Bullard is one of the more hawkish members of the central bank. Bullard told CNBC in September that the Federal Reserve had embarked on a third round of quantitative easing too early and that he would have waited in case the global economy deteriorated more significantly.

Wall Street caught its breath after a minor tizzy that was sparked by the threat that the Federal Reserve might take away its punch bowl early.

The start of 2013 should tell investors to keep their eyes fixed on the world's central banks, rather than its more volatile politicians or even spluttering economies.

WASHINGTON (Reuters) - The White House said on Friday it is vital for Congress to quickly resolve future tax and spending feuds, and raise the U.S. borrowing authority to avoid economic uncertainty.

Writing for U.S. News & World Report, Jason Gold argues why the housing market needs more first-time homebuyers: Home values are now increasing nationwide. While that’s...