Instead, the cost of this risk is borne by the financial safety net, which in the US banking system consists of access to federal deposit insurance, the Fed’s discount window, and Federal Reserve payments system guarantees.
Looking ahead, underlying inflation is expected to increase over the medium term, supported by our monetary policy measures, the ongoing economic expansion and rising wage growth. Turning to the monetary analysis, broad money (M3) growth moderated to 3.7% in November 2018, after 3.9% in October. M3 growth continues to be backed by bank credit creation.