But faced with the possibility that the equilibrium interest rate might have fallen below that level, we have also taken steps to increase the traction of our low rates over the path of the economy.
The compliance breakdowns in recent years that I mentioned earlier in my remarks undermine confidence in large firms’ risk management and controls, which has implications for financial stability. The Fed has taken and will continue to take swift and meaningful action to ensure that firms focus on their risk-management practices and continue to strengthen them.