10  -8recent Federal Reserve survey found that 5 percent of homeowners with a mortgage had received a payment deferral from their lender. 11 So let me extend the same message to others who might be worried: “Bank your customers.” Now let me tell you how these actions fit into my overall view of how to conduct effective bank supervision.
Monetary policy has a limited role to play in this endeavor except as it can promote a stable environment to allow these long-run forces to succeed. Yet, the appropriate setting of monetary policy can be affected by the longer-term trends. Failure to adjust to such trends can lead to deviations from a central bank’s inflation target.