I am confident that we will meet whatever challenges the future may bring.

The amount of currency in circulation is not changing. The money supply is not changing in any significant way.

Given the central role of effective, firmwide risk management in maintaining strong financial institutions, it is clear that supervisors must redouble their efforts to help organizations improve their risk-management practices...We are also considering the need for additional or revised supervisory guidance regarding various aspects of risk management, including further emphasis on the need for an enterprise-wide perspective when assessing risk.

Among the largest banks, the capital ratios remain good and I don’t expect any serious problems . . . . among the large, internationally active banks that make up a very substantial part of our banking system.

If Wall Street crashes, does Main Street follow? Not necessarily.

The more important reason is that the research itself provides an important long-run perspective on the issues that we face on a day-to-day basis.

The financial crisis appears to be mostly behind us, and the economy seems to have stabilized and is expanding again.