In my remarks today, I have noted several broad areas in which constructive work might be done, including improving the regulation and supervision of financial institutions, strengthening the financial infrastructure, and the possible development of a new resolution process for securities firms. In the longer term, it is up to the Congress to determine whether still broader reforms are needed.
Similarly, the increase in disability rates - or even, to some extent, retirement rates - could have both cyclical and structural elements. In sum, the available information is far from definitive. The absence of any clear demographic shift suggests that at least some portion of the unusually large declines in labor force participation has been associated with this business cycle.