...the Federal Reserve Has The

It Takes About Two And A Half Percent Growth Just To Keep Unemployment Stable.

Inflation Is Certainly Low And Stable And, Measured In Unemployment And Labour-market Slack, The Economy Has Made A Lot Of Progress. The Pace Of Growth Is Disappointingly Slow, Mostly Because Productivity Growth Has Been Very Slow, Which Is Not Really Something Amenable To Monetary Policy. It Comes From Changes In Technology, Changes In Worker Skills And A Variety Of Other Things, But Not Monetary Policy, In Particular.

Given The Central Role Of Effective, Firmwide Risk Management In Maintaining Strong Financial Institutions, It Is Clear That Supervisors Must Redouble Their Efforts To Help Organizations Improve Their Risk-management Practices...we Are Also Considering The Need For Additional Or Revised Supervisory Guidance Regarding Various Aspects Of Risk Management, Including Further Emphasis On The Need For An Enterprise-wide Perspective When Assessing Risk.

The Crisis In Europe Has Affected The Us Economy By Acting As A Drag On Our Exports, Weighing On Business And Consumer Confidence And Pressuring Us Financial Markets And Institutions.

The Lesson Of History Is That You Do Not Get A Sustained Economic Recovery As Long As The Financial System Is In Crisis.