Not just for banks, but also other segments of the financial system. This will require closer coordination, more information sharing and deeper embedding of macro-financial analysis and policy into prudential supervision. More also needs to be done in Europe with respect to resolution, deposit insurance, capital markets union and the cultures within financial institutions.
But the persisting -- indeed increasing -- strength of nominal demand for goods and services suggested to us that monetary policy might not be positioned appropriately to avoid a buildup of inflationary pressures and imbalances that would be incompatible with extending the current expansion into 1998, and hopefully beyond.