In particular, sluggish growth abroad and trade developments have weighed on the economy and pose ongoing risks. Moreover, 1/3  BIS central bankers' speeches  inflation pressures remain muted, and indicators of longer-term inflation expectations are at the lower end of their historical ranges. Persistent below-target inflation could lead to an unwelcome downward slide in longer-term inflation expectations.
We will continue to monitor these developments and assess their implications for U.S. economic activity and inflation. We also continue to monitor risks to the financial system. Over the past year, the overall level of vulnerabilities facing the financial system has remained at a moderate level.