And trust tends to be lower in some jurisdictions than others, creating fragmentation, as shown by certain banks’ lack of access to market funding. How will Banking Union help restore confidence across countries? In general, we hope that the SSM will bring about a regime change in supervision and increase trust by creating more stable banks. But this is more a forward-looking consideration.
Likewise, the FOMC median in March was for unemployment to fall to 4.5 percent at the end of 2021, and now it seems possible that it may fall even further. With the economy continuing to reopen, I expect the pace of job creation to remain unusually strong over the spring and summer.