Our expectation is that GDP growth will be close to potential growth over the next few quarters and pick up to be a little above potential thereafter. The unemployment rate, which has declined over the past year by more than expected, is likely to edge just a little lower over the next two years.
Supervision is conducted through the Federal Reserve’s decentralized structure of 12 regional Reserve Banks, which helps us tailor our examinations and supervision to the size, complexity, risk profile, and business model of each institution. Community bankers tell us repeatedly that they are concerned about the changing regulatory environment.