Without bank supervisory authority, the Federal Reserve would have no ability to examine or regulate such institutions. 5  Lack of strong consolidated supervision of systemically critical firms not organized as bank holding companies proved to be the most serious regulatory gap.
It remains resolute in its determination to return inflation to target and will do what is necessary to achieve that. Thank you and I am happy to answer some questions. Endnotes [*]  12  I would like to thank David Norman for assistance in preparing this speech.