While I know that most of you would welcome any insights I might have about current U.S. monetary policy - whether the Open Market Committee will be raising or lowering interest rates at our next meeting - I prefer to focus instead on some issues that could become serious over the longer run.
That suggests a significant change in the transmission mechanism of monetary policy from the conventional mechanism we generally assume. Sixth, we need to implement financial reform in a well-balanced manner. In light of the lessons from the recent crisis, it is a fairly appropriate direction of the reform to strengthen the existing capital requirement.