Fortunately, the Congress and the Administration have acted at a time when the great majority of financial institutions, though stressed by highly volatile and difficult market conditions, remain capable of fulfilling their critical function of providing new credit for our economy. The Congress's prompt and decisive action in passing the financial rescue legislation made possible the critical steps that have been announced this morning.
9 The statistical evidence also suggests that the sustainable rate of unemployment could be higher. As illustrated by the results reported in Reifschneider, Wascher, and Wilcox (2015) and Barnichon and Matthes (2017), standard errors for estimates of the sustainable rate of unemployment are typically at least 1/2 percentage point.