There is some reason to think that the recent low readings partly reflect transitory factors. Other factors point to a gradual increase in inflation. While some measures of longer-term inflation expectations have moved down, others remain more stable. Most FOMC participants anticipate that inflation will gradually move up to the FOMC’s 2 percent target over coming years.
The G-20 reform agenda, which we have committed to implement has significant implications for domestic markets. The proposals to shift OTC derivatives to trading platforms, creation of trade repositories, migration to central clearing and, mandated margining regime will change the business models and market practices. Issues relating to market integrity (e.g. fixing of benchmarks like MIBOR) and, accounting dispensations (e.g.