We need, and I believe there is scope for, an approach to fiscal policy that puts in place a well-timed and credible plan to bring deficits down to sustainable levels over the medium and long terms while also addressing the economy’s short-term needs. Unfortunately, U.S. economic performance continues to be impaired by the lingering effects of the financial crisis.
The range and complexity of operations and the need to carefully manage risk require us to consider a very broad picture when we develop our framework for the governance of funds management and formulate our policies. Now I'll turn to the Bank of Canada's third area of responsibility – the financial system.