Now let me explain why I believe there is still considerable slack in the labor market, why I think there is room for continued help from the Fed for workers, and why I believe Dorine Poole, Jermaine Brownlee, and Vicki Lira are right to hope for better days ahead.
This tendency is being reinforced by the fact that some credit institutions are acquiring new, truly global dimensions - as is illustrated by the announced merger of Deutsche Bank and Dresdner Bank here in Germany. Hence there is a much greater onus on central banks than in the past to take on responsibility for the financial stability of the financial markets, too.