Alleviating these conditions will require a different set of responses. Next I will discuss some Federal Reserve initiatives in these areas, and highlight areas in which work still remains to be done. The high share of distressed sales and the large inventory of vacant homes stem, in large part, from the elevated levels of foreclosures.
The Bank shares this operational independence with many other central banks around the world and this is now well understood to be essential for effective macroeconomic management. But independence requires accountability if it is to be politically sustainable in a democracy and accountability, in turn, requires transparency.