The US Treasury's Office of Financial Research released its "2015 Annual Report to Congress," which contains just a few brief mentions of money market mutual funds. The press release, entitled, "Office of Financial Research Issues 2015 Annual Report to Congress: Report Analyzes Threats, Describes Progress, and Presents 2016 Agenda" says, "Threats to financial stability arise when shocks expose vulnerabilities in the financial system. The report says threats to U.S. financial stability have edged higher since last year's report, but remain in the medium, or moderate, range; that assessment has not changed since the Federal Reserve incrementally increased short-term interest rates last month." We wrote about the OFR's previous Financial Stability Report in our Dec. 16 News," "Treasury OFR Releases Financial Stability Report; MMFs Minor Concern." The release adds, "I hope that, taken together, the two reports will help us communicate with a wide range of stakeholders while ensuring that we are transparent and accountable in our work and the ways we pursue it," said OFR Director `Richard Berner. The OFR develops tools to assess and monitor threats to financial stability, and evaluates the effectiveness of policy tools designed to improve the resilience of the U.S. financial system." We covered a previous report on "Liquidity Funds and Separately Managed Accounts" in our July 10 News, "OFR Sheds Light on Liquidity Funds, STIFs, Managed Accts in Form PF." One of the monitoring tools listed in the 80-page report is a "Money Market Fund Monitor," which, "Will examine individual funds and the industry as a whole on the basis of credit, interest rate, and liquidity risk. Each risk category will be analyzed based on portfolio statistics and holdings."

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