With a lag, business investment should turn up as prospects for a sustained expansion of economic activity become clearer. And both households and businesses should benefit from a leveling-off in the prices of energy and other commodities along the path implied by futures markets. BIS Review 64/2008  3  As with any forecast, mine is subject to a number of uncertainties.
To be quite clear, the Federal Reserve believes that strong capital is fundamentally important to the health of our banking system. We believe Basel II will be a strong contributor to our tradition of ensuring that U.S. banks maintain capital levels that provide an appropriate cushion against risk-taking.