While the current income distribution structure cannot be dramatically changed in the short term, the second-best choice is to maintain and expand investments, and channel investments to sectors and areas to achieve efficient but not wasteful allocations. This way, the residual savings, namely, total savings net of total investments (savings surplus), will not be so large, and will not have a major impact internationally.
As we gain insights from banks’ experience with the initial set of fraud tools, we will explore other tools that may be valuable, including centralized monitoring by the FedNow Service.