The pressure has come from both sides. Governments are pushing central banks to exceed their monetary boundaries and central banks are stepping into areas not previously viewed as acceptable for an independent central bank. Let me give you some examples. I will start with what I see as a not-so-subtle undermining of the commitment to price stability.
In the interest of getting to the important work of this conference, I will be brief, but if I accomplish anything by speaking to you today, I hope it is to convey the Board’s understanding of the unique and important role of community banks in our financial system as well as the Board’s commitment, at the highest level, to consider how our supervisory and regulatory decisions affect those institutions.