The Federal Reserve remains committed to using our full range of tools to support the economy for as long as needed, and a strong, resilient banking system is an essential element of such support. A durable recovery demands banks that lend actively, confront gains and losses honestly, withstand unexpected shocks, and help customers rebuild and adapt to the new landscape.
Our monetary policy framework has helped us to achieve a historically low rate of inflation and, as a direct consequence of that, historically low interest rates. This suggests that, in our current economic predicament, rethinking monetary policy may not be the best use of our time. South Africa has far more urgent economic challenges, in particular reducing our structural unemployment rate.