In response, following enactment of the Troubled Asset Relief Program by Congress, Secretary Henry Paulson oversaw the injection of government capital into the nation’s largest financial firms, as well as into many smaller banking firms.
Inflation expectations for the euro area continue to be firmly anchored in line with our aim of maintaining inflation rates below, but close to, 2% over the medium term. At the same time, weak economic activity has extended into the early part of the year and a gradual recovery is projected for the second half of this year, subject to downside risks.