This rule would be binding on the Board and on all staff of the Federal Reserve System, including bank examiners. The third and fourth process improvements relate to supervisory communication. The third improvement is to restore the “supervisory observation” category for lesser safety and soundness issues.
Food inflation, prone to supply shocks, is also assuming a structural character given the change in the dietary habits and high demand, in absence of adequate supply response. Sharp increase in non-food manufactured product inflation suggests that producers are able to pass on the cost increases, given higher demand.