Figure 3 shows that the payroll data seems to have caused the market to price in an expectation of a higher federal funds rate target over the entire policy horizon. Of course, that change in policy expectations is consistent with the significant rise in Treasury yields that occurred after the employment report. Observing market expectations of policy provides useful feedback to the policymakers.
Moreover, we need shared resources at the European level to avoid protracted wrangling between national governments on how to share the costs of resolution. These resources, however, would not come from the taxpayer. The resolution fund would be financed provided by ex ante risk-based levies on the banking sector.