In other words, most of the deviation in CPI inflation from the inflation target is explained by interest rates falling more than they have risen during the period. When this effect is discounted, there remains a deviation of two tenths of a percentage point from the inflation target. Although this deviation should not be ignored, it can hardly be called a major failure. From a broader historical perspective and with a realistic attitude to the precision of monetary policy, I think that one can stick out one's neck and say that an average CPIF inflation rate of 1.8 per cent is a pass rate, perhaps even a pass with distinction. Calculations of costs in terms of number of unemployed must be taken with a rather large pinch of salt This leads me in to the discussion on the costs to the real economy of inflation on average undershooting the target. One calculation has been presented by my former Executive Board colleague, Lars E.O. Svensson, who arrived at an average cost corresponding to 38,000 persons unnecessarily unemployed.3 Another figure regarding the costs of the monetary policy conducted that has attracted some attention is that 60,000 fewer people would have  2  Support for this use of underlying inflation measures, combined with an inflation target defined in terms of the CPI, was expressed in the assessment of the Riksbank's monetary policy 2005-2010 carried out by professors Goodhart and Rochet in 2011. 3  Svensson (2013a,b).
In 2021, the FOMC introduced the Standing Repo Facility and the FIMA Repo Facility.6 These standing facilities are priced such that they are not used often in normal times but remain ready to provide liquidity as needed should funding pressures arise. We also must continue to prioritize having a robust financial system, and that starts with the most core market of all: the U.S. Treasury market. The Inter-Agency Working Group for Treasury Market Surveillance is doing just that. Ahead of today's conference, the group published a progress report around its work to enhance the resilience of the U.S. Treasury market, which I strongly encourage everyone to read.7 The report emphasizes progress made on the proposed expansion of central clearing, enhancements to data collection and transparency, and the potential for evolution in market structure. It's also important to recognize that the world is not static. The Treasury market has increased enormously over the past quarter century, and the key players have changed significantly. And the rest of the financial system continues to evolve, with nonbank financial institutions (NBFIs) playing an increasingly important role. The Financial Stability Board has been actively engaged in this space, assessing global trends and risks through a monitoring exercise and developing policy recommendations to strengthen oversight and regulation.8 Here at the New York Fed, we too are deepening our expertise and monitoring of NBFIs. 3/4  BIS - Central bankers' speeches  But this is not just a job for the official sector.