The big picture is that the world has made considerable progress in shaking off the effects of the 2007–08 financial crisis. Some countries have made more progress than others, but, taken as a whole, the world economy is operating close to potential, and monetary policy has begun the process of normalization.
These reports were so widespread that the Government Accountability Office (GAO) conducted a study on supervision of CRE lending and concluded that the guidance warranted clarification.6 Federal Reserve staff is working with the other agencies on ways to clarify the expectations of the interagency CRE guidance and reduce any unintended restrictions on sound lending.