Unfortunately, my discussions with community bankers lead me to believe that we might be approaching that point with residential mortgage lending regulation. I have thought a lot about how we have come to this point.
These expectations are the basis for the determination of longer maturity interest rates and yields that are relevant for spending and saving decisions and which ultimately influence economic and monetary developments and the price level. However, experience of the recent financial turmoil demonstrates that disturbances in the money market may interfere with policy transmission.