Notwithstanding the trauma of the crisis and the recession, the U.S. economy remains the largest in the world, with a highly diverse mix of industries and a degree of international competitiveness  4  BIS central bankers’ speeches  that, if anything, has improved in recent years.
This will allow the market to begin to read credit conditions and allocate resources according to their best use rather than in response to artificial incentives. More than a year ago, I advocated removing the “extended period” language to prepare the markets for a move to 1 percent by the fall of 2010.