Regarding inflation, as I mentioned earlier, the recent effects of lower prices for crude oil and for imports on overall inflation are expected to wane during this year. Combined with further tightening in labor and product markets, I expect inflation will move toward the FOMC’s 2 percent objective over the next few years.
A primary objective of the liquidity risk management framework should be to ensure, with a high degree of confidence, that the bank is in a position to both address its daily liquidity obligations and withstand any period of liquidity stress.