But the forecast we released in our May 2008 Statement on Monetary Policy was that the net result would be a significant slowing in demand and output growth this year. The evidence is pretty clear that some key components of private demand are now on a slower track. As always with such episodes, the extent of that slowing, and its duration, are uncertain.
Funds held in the capacity of agent by these US institutions should retain their agency status and should not be affected by the financial losses of these institutions. Administrative hurdles during the adjustment period may however hamper immediate access. Any problems of access to funds held in an agency capacity are expected to be short-lived if the bailout goes through.