There are times when the interests of banks and regulators are aligned, and there are many instances where our objectives diverge. This doesn’t mean that examiners and banks will inevitably have a contentious relationship.
With inflation well above our longer-run goal of 2  -3percent and an extremely tight labor market, we raised the target range for the federal funds rate at each of our past three meetings, resulting in a 1-1/2 percentage point increase in the target range so far this year.