2/4  BIS central bankers' speeches  1 Randal K. Quarles, “Supervision and Regulation Report” (testimony before the Committee on Banking, Housing,  and Urban Affairs, U.S. Senate, Washington, D.C., May 12, 2020). Return to text 2 I have recently spoken on the broader strains in the financial system and the significant efforts made to address  them. See Randal K. Quarles, “What Happened?
The central and state governments have to continue on the path of fiscal consolidation so that they borrow less and thus spend less on interest payments. Households will have to adjust to lower nominal rates, but must recognize that higher real rates make their savings more productive. They will find it worthwhile to save more to finance the enormous investment needs of the country.