It's noteworthy that other European countries which are also on the path to economic reform, such as Italy, are implementing institutional reforms in parallel with structural reform. Is the situation in the euro area fragile enough to justify new measures by the ECB? We are waiting to see the outlook for 2017 in the updated Eurosystem staff macroeconomic projections.
It hardly needs saying that we must to be alert to the buildup of risks in the credit markets that could undermine the safety, soundness, or solvency of the G-SIBs or the broader system. If deterioration in one or more of the key credit markets would credibly raise such threats, the Fed and the other supervisors should react preemptively.