In this setting, a similar low-side surprise, if it were to persist, would bring us uncomfortably closer to the ELB. My FOMC colleagues and I must—and do—take seriously the risk that inflation shortfalls that persist even in a robust economy could precipitate a difficult-to-arrest downward drift in inflation expectations.
An additional 19 percent said that they were not sure whether their company had a formal process for identifying risks. Sound corporate governance is an essential element of a strong risk management process.