The coordinated efforts and initiatives of the Federal Reserve, the U.S. Treasury Department, and other government agencies have contributed to the progress we have achieved in stabilizing the financial markets and the banking system. I think it is important to note that most of these efforts were directed at the system as a whole and were made available to banks of all sizes.
In the spirit of old year endings and new year beginnings, I would like to review last year’s economic performance, highlight some prospects for the upcoming year’s economic performance, and, finally, raise some topics related to the underpinnings of macroeconomics and monetary policy.