More body cameras have helped stimulate that because its only in response to the cell phones. If the cell phones werent there the body cameras were not be as urgent. The bottom line is that all policing is local. Whatever it is that the federal level the responsibility to address crime occurs locally. The motivation of that personnel belongs to the chief and the sheriff. Thank you for being here today. [applause] [inaudible] [inaudible] [inaudible] [inaudible] [inaudible] [inaudible] from the aging of the us population, relatively steady Participation Rate is a further sign of improving conditions in the labor market here we expect that the job market will trend of further returning to inflation the 12 month change in the price index for personal consumption, expenditures was 1. 4 in july, down from earlier in the year. Core inflation which excludes the volatile food and Energy Category has also moved lower. For quite some time inflation has been running below the committees 2 longer run objective. However, we believe this years shortfall in inflation primarily reflects development that is largely unrelated to broader Economic Conditions. For example, when reduction earlier this year in certain categories of prices such as Wireless Telephone Services are currently holding down inflation , but these effects should be transitory. Such development is not uncommon and as long as Inflation Expectation remains reasonably well anchored are not a concern from a policy perspective because there affects state a way. Similarly the recent hurricane related increases in gasoline prices will likely boost inflation, but only temporarily. More broadly, with employment of that maximum sustainably level and the label market continuing to strengthen the committee continues to expect inflation to move up and stabilize around 2 over the next couple of years in line with our longer run objective. Nonetheless, our understanding of the forces driving inflation is not perfect and in light of the unexpected inflation readings this year the community is monitoring inflation developments closely. As always, the committee is prepared to adjust Monetary Policy as needed to achieve inflation in employment objectives over the median term. Let me turn to the Economic Projections the Committee Participants submitted to the meeting which extends through 2020. As always, participants condition their projection on their own individual views of appropriate Monetary Policy, which in turn depends on each participants assessment of the many factors that shape the outlook. The median projection for growth of inflation adjusted growth domestic product or real gdp is 2. 4 this year and about 2 in 2018 and 2019. By 2020 the median growth projection moderates to 1. 8 in line with the estimated longer run rates. The median protection of Unemployment Rate stands at 4. 3 in the Fourth Quarter of this year and runs a little above 4 over the next three years modestly below the median estimate of its longer run normal rate. Finally, the median inflation projection is 1. 6 this year, 1. 9 next year and 2 in 2019 and 2020. Compared with the projection made in june real gdp growth is a touch stronger this year and inflation particularly core inflation is slightly softer this year and next. Otherwise, the projections have little change from june. Returning to Monetary Policy although the committee decided at this meeting to maintain its target for the federal funds rate was to continue to expect that the ongoing strength of the economy would warrant gradual increases in that rate to sustain a healthy labor market and stabilize inflation around our 2 longer run objective. That expectation is based on reviews that the federal funds rate remains somewhat below its neutral level. That is the level that is neither expansionary nor contractionary and keeps the economy operating on an even keel. Because the neutral rate currently appears to be quite low by historical standards, federal fund rate would not have to rise much further to get to a neutral policy stance, but because we also expect a neutral level of federal funds rate to rise somewhat over time additional gradual rate hikes are likely to be appropriate over the next few years to sustain the economic expansion. Even so, the committee continues to anticipate that the longer run neutral level of the federal funds rate is likely to remain below levels that prevails in previous decades. This view is consistent with participants projections of appropriate Monetary Policy. The median projection for the federal funds rate is 1. 4 at the end of this year, 2. 1 at the end of next year, 2. 7 at the end of 2019 and 2. 9 in 2020. Compared with the projections made in june, the median pass to the federal funds rate is essentially unchanged. The median estimate of the longer run normal value is down to my 2. 8 . As always, the Economic Outlook is highly uncertain and participants will adjust their assessments of the appropriate path for the federal funds rate in response to changes to their Economic Outlooks and abuse of the risks to their outlooks. Policy is not on the preset course. As i noted, the committee announced today that it will begin its Balance SheetNormalization Program in october this program, which was described in the june addendum to our policy normalization principles and plans will gradually decrease our reinvestment of proceeds from maturing Treasury Security and principal payments from Agency Security. As a result, our Balance Sheet will decline gradually and predictably. For october, through december the decline in our Security Holdings will be limited at 6 billion per month for treasuries and 4 billion per month for agencies. These limits will gradually rise over the course of the following year to maximums of 30 billion per month for treasury and 20 billion a month for Agency Security and will remain in place through the process of normal in the size of our Balance Sheet. By limiting the volume of securities, the private investors will have to absorb as we reduce our holdings to capture and guard against outside moves in Interest Rates and other potential market. Finally, as we have noted previously changing the target range for the federal funds rate is our primary means of adjusting the stance of Monetary Policy. Our Balance Sheet is not intended to be an active tool for Monetary Policy in normal times. Weve therefore, do not plan on making adjustments to our Balance SheetNormalization Program, but as we state in june , the committee would be prepared to resume free investments if a material deterioration in the Economic Outlook warranted a sizable reduction in the federal funds rate. Thank you and i would be happy to take your questions. A bloomberg news. Theres been extraordinary progress during your term as chair in lowering several measures of unemployment and underemployment and all while inflation has remained subdued, but same people are even asking why stop there. Bill spriggs, chief economist criticized the fed last week for seeking to maintain unemployment above 4 which he notes necessarily means keeping the Unemployment Rate among black americans above a percent. You describe this as a deliberate policy to sacrifice many hundreds of thousands of potential workers and their families out of fear of future inflation when in fact the feds preferred measure of inflation has not exceeded 3 in more than 25 years. On wondering how you would respond to his frustration over the feds desire continue raising rates when the core inflation really shows no sign of heading above the feds metrical for inflation. Thank you. Let me first say employment is very important part of our mandate. We are charged by congress with trying to pursue maximum employments and we have taken that various seriously. Im very pleased and heartened by the improvement we have seen in the labor market and in 4. 4 Unemployment Rate has really fallen to quite a low level. As that has happened Unemployment Rates for less advantaged groups in the labor market particularly africanamericans and hispanics has fallen more dramatically than that for the nation as a whole, reversing the outside increases that those groups experienced when the financial crisis and Great Recession hits. These are really very positive developments, so we certainly seek a strong labor market, but we have a dual mandate, which is inflation and unemployment and we also have to be mindful of their obligation to achieve 2 inflation objective over the median term. Now, i recognize and its important that inflation has been running under our 2 objective for a number of years and that is a concern particularly if it were to translate into lower Inflation Expectations. For a number of years there was understandable reasons for that short fall and it included quite a lot of slack in the labor market, which by judgment would be is largely disappeared. Very large reductions in Energy Prices and a large appreciation of the dollar that lowered import prices starting aid made it 2014 this year the shortfall of inflation from 2 when none of those factors is operative is more of a mystery and i will not say that the committee clearly understands what the causes are of that. Now, we do in our regular projection shall fan charts indicating the typical size of forecasters, all of the variables, gdp, Unemployment Rate and inflation are forecast by ourselves and private forecasters and so there is variation in these economic variables from year to year. I would say our judgment as i said in the statement, is that the shortfall is not largely related to cyclical consideration. You can see from the projections that the Committee Participants submitted that we anticipate that core and headline inflation will move up close to our 2 projective next year, namely that the shortfall this year is due to transitory factors that are likely to disappear over the course of the coming year, but i want to emphasize that we have a commitment to raising inflation to 2 and as we watch incoming data that assessments that you see participants write down about the path of the federal funds rate, they are not set in stone. They are not definite plans. We will look at incoming data on inflation and on other economic variables including the labor market in deciding what we should actually do Going Forward and if it proves contrary to our expectations that the shortfall is persistent. It will be necessary to adjust Monetary Policy to address that, but i want to point out that while there are risks that inflation could continue below 2 , which we need to take account of in Monetary Policy, Monetary Policy also operates with the lag and experienced experience suggest tightening in the labor market graduate with the lag tends to push Price Inflation and theres also a risk that we want to be careful not to allow the economy to overheats in a way that would force us later on somewhere down the road to have to tighten Monetary Policy rapidly, which could cause a recession and threaten the very desirable labor Market Conditions that we have now. The fed spoke recently about elevated prices in the market in the most recent meeting for one that was held today. How our Market Conditions except affecting that the bait at the moment about how quickly to rein in stimulus and have they in your own mind help to account some of the concerns you had about that inflation and shortfalls even seeing. At every meeting we try to assess the Economic Outlook and take account of information accumulated about the real economy and also developments in Financial Markets and put all of that together in assessing the course of the economy, so developments affecting asset prices and longerterm Interest Rates, the exchange rate, all of those acts back some financial conditions factor into our thinking. Not clear to get it clear read on the asset prices for the overall outlook. Sometimes movements upward movements in prices can for example reflect a change in Market Participant number reduction Market Participant, estimates longer level of Interest Rates, so there has been so there have been revisions to the committee and to Market Participants estimates of the longer run normal level of Interest Rates, which in turn reflect in some sense a view that going out many years and demand globally is like to be weakened by continuing low productivity growth and aging population and of course we dont know if that view is correct, but but its a factor i wish could be one reason why i said prices has moved as they have, so why rss prices moving is important in determining the impact on the overall outlook, but certainly we are taking accounts of movement and asset prices in the value evaluating appropriate policy. Cnbc, madam chair, you just said in your opening remarks that reducing the Balance Sheet should not be an active tool for Monetary Policy in normal times. A winter if we could explore if there is any sensitivity to the plan you Just Announced and if there is a spike in Interest Rate, a pledge in the stock market, weakness and growth. And the just amy you indicated the only reason why you would change its suggested the only reason to change the Balance Sheet is if it first required a change in the fund rate. Is that true or is are sent out as some Unexpected Development in markets, or for example given we dont know what the plans are in the fiscal side for the deficit in terms of tax cuts there could be a sudden spike in the deficit. Will the Balance SheetReduction Plan b immune to all that and given that question and i did that this is never been done before, why so much certainty of the about the plan you have announced an apparent unwillingness to adjust it quite like so we had to policy tools that are available to us to use, the Balance Sheet and adjustments in shortterm Interest Rates, federal funds rate target and historically the committee is operated to adjust monetary conditions to meet our economical when there are sharks to the economy by adjusting the federal funds rate, our shortterm Interest Rate target. That is something, a teacup monetary control. We are familiar with this and we believe understand pretty well what the effects are on the economy. Market participants understand how the rule has been used and would likely be adjusted in response to shocks to the economy. Our preferences when we had two different tools that we could use to actively adjust the stance of policy to prefer and to make a commitment that to the maximum extent possible the federal funds rate will be the active tool policy. That is our go to tool, that is what we intend to use them as we think its a threat to the economy is sufficiently great that we might have to cut the federal funds rate. We have moved it up to one and one quarter expected to go up further, but very significant negative shock to the economy could conceivably force us back to the socalled zero lower balance. We have said if there were that type of material deterioration in the outlook where we could face a situation where the federal funds rate wasnt a sufficient tool for us to adjust Monetary Policy, we might stop from our Balance Sheet and resume investment, but as long as we believe that we can use the federal funds rate as a tool that is what we intend to do. So, if there are small changes in the outlook that require recalibration of Monetary Policy , we will change our anticipated setting of the federal funds rate, but not for example change, caps on reinvestment or continue reinvestment for a few months and then change it. We think it provides greater clarity to Market Participants about how policy will be conducted and will be less confusing and more effective in terms of conducting policy. You have now committed to policy of reducing your Balance Sheet very gradually. You have described it plans to raise Interest Rates more gradually than previously. You are locked in for a long period of time to forecast Monetary Policy will eventually keep Interest Rates at a low level and keep a balance rate at a high level. If something goes wrong does the fed have room to respondent of these conditions in the next several years and could you describe for us what your plans are quite make the only thing i would object to there is you said we were locked in and i would say that we are not logged in. We believe that Economic Conditions will evolve anyway thats will warrant gradual for the further increases in our federal funds rate target, but if conditions evolve differently than that, whichever direction that might be it might be the growth is more rapid, Labour Market tightens more quickly than we assume and inflation appears to be picking a more rapidly than we had expected. We have not promised, no matter what that that passive Interest Rate increases will be gradual. We believe that that will be appropriate, but we always watch the economy and will adjust policies appropriate. As i said the hurdle to changing our plans, with respect to the Balance Sheet in some sense is high. If conditions were to weaken we would really only consider resuming investment if it were what we refer to as material deterioration and i tried to explain why that is, but we will adjust Monetary Policy. What you see in the. Dot plot is each participants best guess based on the information they had today about what will be appropriate in light of their expectations about how the economy would involve and we think its helpful to show the public some sense of our evaluation under of the economy, but we are assessing incoming data in these plans are subject to change. What is not subject to change is our commitment to doing everything our power to achieve the goals that congress has assigned to us, which are price ability of 2 inflation and maximum employment. Do you [inaudible question] certainly if growth is stronger with inflation picks up more rapidly we have room. We have a certain amount of room now and we have raised the funds rate four times. We believe that we are on a path that will likely be further increasing over the next couple of years which will give us greater room. We think the recovery is on a strong track, so the reason for our actions to date and beginning to run down the Balance Sheet is we think that economy is performing well and we have confidence in the outlook of the real economy. Of course, there are shocks and if the negative shock to the economy were sufficient, we recognize that we might be unable to pursue objective by cutting the federal fund rate and that is why we say explicitly that we would be prepared in that event to resume reinvestment and other tools that we used in the financial crisis, Forward Guidance would be a variable to us. Wall street journal. Cherrie yellen, recently there was a speech in which she said trend inflation appear to have moved lower by around half a percentage point and i wanted to ask, do you agree and what with the fed need to do if anything to boost trend inflation if it is following and related to that, you have said you expect that inflation softness to prove transitory. Compared to three months ago how for measure current expectation of the slowdown of her main transitory and what implications were that have for Monetary Policy if it is not . The term of trend inflation usually there are a variety of statistical techniques that can be used to extract a trend from a series, exactly what that means is in some sense a statistical thing and there are methodologies that would show a modest decline in recent years in the trend. Thats where weve had a number of years in which inflation has been low. As i said in answer to an earlier question, i think if you go back to say 2013 and consider until this year the reasons why inflation was lower not hard to understand. Its a combination of slack in the labor market, decline in Energy Prices and a strong dollar to pull down import prices, so whats important in determining inflation Going Forward is Inflation Expectation by some measures, professional forecasters have been rocksolid. We also look at expectations which have come down some. Market based measures of inflation, station, as we mentioned in the statement, have been stable in recent months, but have declined to level that are low by historical standards. That might suggest that Inflation Expectation has come down, but we do a premium built into inflation compensation that make it possible with Inflation Expectations, so there is a miss this year. I cant say i can easily point to a sufficient set of factors that explain this year why inflation has been as low as mentioned. Frankly, low inflation is more broadbased. The fact that inflation is unusually low this year does not mean it will continue. Remember, in january and february core inflation was around 1. 9 and we look to be very close to two now. We had several months of data to pull that down and what we need to do is figure out whether or not the factors that have lowered inflation are likely to prove persistent or are likely to prove transitory and thats what we are going to try to be determining on the basis of incoming data and you asked me about the policy implications. If we determine our view changed and its of thinking the factor is holding inflation down with transitory we came to repute that it would be persistent and require an alteration Monetary Policy to move inflation back up to 2 and we would be committed to making that adjustment. A low. Went to ask you, market seems to be pricing in a shallower path of rate hikes then the fed does and that sep. I wonder what you think that markets might be missing here and sort of what is your conviction about that your view is the correct one for the pace of gradual means that seems to be a bit faster than what markets are pricing . Im not really going to try to explain what market participates are thinking. I think of all of our market and participants pass send them down , not in the last couple of quarters, but over the last several years theres been a growing recognition of socalled new cold Interest Rate consistent with the economy operating at maximum employment. That rate seems to have come down in most of the economic papers that you Research Suggests is quite low. Sep, fomc participants you can see by their estimates of the longer run normal rate of interest, this time it came down from 3 to mark to 7. 5 showing even in the long run fomc participants in why the incoming data is addressing their views i would say they still believe that in real terms that neutral rate will rise somewhat over the next few years with a 2 inflation rate in real terms announced to 75 basis points which is prior than the zero or slightly positive rates now, so that is one factor that explains the path in the sec. Market participants may have lower estimates or believe a low neutral rates may be more persistent. I mean, lets me emphasize that as i said before there is nothing set in stone about the policy paths that you see in the summary of projections. Theres a great deal of uncertainty around them, not only are there disagreements there are also uncertainty and fomc participants have been revising their views over time and they will continue to do so. I would also point out a couple of technical reasons why its difficult to compare what you see in the sep and market implied paths. One is fomc participants are writing down what they think is the most likely or modal outcome for rates, but of course there are Downside Risks and the mean rate if they are asked to write that down would take account of waiting all possible outcomes and likely would be lower than what participants are writing down as their most likely outcome. In addition, in markets many economists have suggested that there are term premium that can affect moving from the socalled market implied paths to the view for what the future federal funds rate path is and if theres term premium on negatives its when economists theres a little less difference between what you see in the fomc plot and market implied plot. [inaudible question] i will say that i have not had a meeting with president from. I met with him early in my turf and i have not had a meeting with him. Foxbusiness. Cherrie yellin, month ago you delivered a speech in wyoming which he said the balance of research suggest the core forms we put in place have boosted resilience without unduly limiting credit availability. First, what message do you Want Congress and President Trump to hear from the statement. The accommodative process that the fed has followed the last 10 years has brought us to full employment they have not participated in the gains in the stock market. Median house price is at a record high and a 39 million americans according to a harvard study spend more than 30 for housing, so widget what would you say to those people about fed policies and the impact that it has had on their lives. You ask me what was the main message of my speech and i would say is that we have put in place since the financial crisis a set of core reforms and in my personal view its important they remain in place in this core reforms are more capital, higherquality capital, lower liquidity especially systemically important Banking Institutions stress testing in their delusion to loosen plans and that banking supervision has really strengthen the Financial System and made it more resilient and i believe they should stay in place, but i also tried to emphasize, and i believe they have contributed to growth and availability of credit. I have also tried to them for size that all regulators should be attentive to undo Regulatory Burden and look for ways to try to scale that back. This is especially true after years in which we have implemented a large number of complex regulations and we have been committed to doing that. I would point out particularly committee banks that are laboring under significant Regulatory Burden, we have been looking for ways to scale back burden. We are in a gripper progress process where we listen to concern among Community Banks and are looking for ways for example to simplify capital standards and reduced burdens and thats very important. More generally, we want to and we would like to see congress as well we can do things to appropriately tailor regulations to the risk posed by different kind of banking organizations. There are some things that congress could also do to help that process and we have made some concrete suggestions. Then, some of the regulations that were put in place with regulators since the crisis are really quite complex and we are working with other regulators to try to see if we can find ways while carrying out what dodd frank intended that banking organizations not be involved in preparatory trading. Nevertheless, the implementation can be less complex, so that was my main message. Your second question asked about what impact the fed has had on Income Distribution because of the fact that stocks and homes can be disproportionately. I say look, we were faced with a huge recession that took on an enormous toll in terms of comprising large number of people in disproportionately lower income people who were less advantaged in the labor market found themselves without work. We had a 10 Unemployment Rate in our congressional mandate and it is maximum employment and price ability. We say Monetary Policy not with a view towards assessing the distribution of income, but pursuing those congressional and mandated goals and i am pleased to see the Unemployment Rate and every other measure i know of pertaining to the labor market show dramatic improvement over these years and that is usually to the Economic Growth to the wealth and Income Distribution, but the bottom end of the district Income Distribution we will see this year may be an incoming real terms rise significantly throughout the Income Distribution. Next month with the departure of vice chair fisher, the fed will lose its core on the fed to bore dashboard. Will that present operational challenges . D of contingency plans . Has the senate assured you mr. Quarrels will be his his confirmation will be approved and the discussions with the administration, have they given you assurances that the pace of a nomination will pick up . First let me say i will greatly miss vice chair fisher who has made a norms contributions to the aft zero in the work of the Federal Reserve and i really enjoyed working with him and appreciated his wise counsel when friendship. Its conceivable you will be due and three. Hopeful confidence that even if that happens we will be able to carry out our complement of responsibilities. Theres every action that we are allowed to take under the Federal Reserve act can be taken even if we of three. Although, we will have to abide by the restrictions that are part of the government and the sunshine act. I would welcome a full complement of colleagues. Rev a lot of work to do it would be nice to distributed over more people, but perhaps more important than that i think its very important a range of use as we deliberate on policy action. Interactions with Randy Carlson and hope he will be confirmed. I look forward to working with him. I hope that administration will make other nominations to fill our slots. Had their long from the washington post. As you know congress is considering a major tax reform passed pack should package. Do you or any members have concerned that the package doesnt end up being deficit neutral and adds to the debt. With that be problematic for the economy . Look, that is something that is a matter for congress and the white house to decide. You know, i have put 40 field principles about fiscal policies that i would reiterate that one of the problems that the American Economy suffers from along with many other economies around the globe is slow productivity growth and i think it would be very desirable if fiscal package had the potential in it to create incentives that would raise productivity growth. We do face in terms of longerterm deficit as the population ages in unsustainable debt path that will require, i believe, some adjustments to fiscal policy and i Hope Congress will keep that in mind, but beyond a few Core Principles its really i dont want to weigh in on details. When you testified before Congress Last july, you said that you may be prepared to take Enforcement Actions against wells fargo if it proved to be appropriate or do you think its appropriate and what actions could you take . So, let me say that i consider wells fargo towards its customers to have been egregious an and unacceptable. We take our supervision responsibilities as a company very seriously and we are attempting to understand what the root causes of those problems are and to address them i am not able to discuss confidential supervisory information and not yet able to tell you what actions we may take, but i do want to say that we are committed to taking the actions required is necessary and appropriate to make sure that the right set of controls are in place in that organization. Can you give me any type of timeline . We are working very hard on their. David harrison. I would like to followup on the Balance Sheet question. What specifically would it take for you to reverse the decision to wind down the Balance Sheets and theyre what under what conditions would you add to the Balance Sheet again and separately as a followup, looking more broadly how do you think history will judge the effectiveness of your purchases and the conditions under which that policy should be used . So, starting with the last part of the question, i mean, my own judgment based on my experience and Economic Research that has tried to estimate the effectiveness of our Balance Sheet actions starting in 2008 and is also looked at dissimilar Balance Sheet actions in other parts of the world including the euro area is that these actions were successful in making financial conditions more accommodative and i believe in stimulating a faster recovery than we otherwise would have had recent fed working paper estimated that the full set of Balance Sheet actions that we took during the crisis may have lowered longterm Interest Rates by about 100 basis points. Obviously, there are different estimates around of what difference it made, but i would say that its effective. It will be up to future policymakers to decide in the event of a severe downturn whether they think its appropriate to again, resort to Balance Sheet, to adding assets to a Balance Sheets. I would say that if economists are correct that we are living in a world where the level of neutral Interest Rates, not only in the united states, but around the world is likely to be low in the future due to slow productivity growth in demographics and we dont know that you will bear out to be correct, but it is a view that many people adhere to when theres evidence of it. Future policymakers will be face with the question of in the event of a severe downturn, where they are not able to provide as much stimulus as they would like by cutting overnight Interest Rates, what other actions are available to them and during the crisis we bought longerterm assets and use Forward Guidance and for my own part i would want to keep those things in the toolkit as being available. It will be up to future policymakers to decide how to rank those in whether or not there might be other options that are available, but i dont think this issue will go away. Although, perhaps its this could well be a decision that future policymakers will have to face in the event significant asset economic shot, i mean, you ask me what would it take for us to resume reinvestment and i cant really say much more than we said in the guidance that we provided which is if there is a material to your ration in the Economic Outlook and we thought we might be faced with a situation where we would need to substantially cut the federal funds rate and could be limited by the socalled lower bound. Its that type of determination that our committee is saying would lead us to resume investment. , so thats our committee has been unanimous in confirming the statement of intention so that i think thats where our committee stands. So i think thats high bar to resume investments and thats when answering previous questions with small negative shock, our first tool and most important reliable tool the federal funds rate, but if there is a significant shock, material determination to the outlook we would consider reinvestment. Hello. Victoire yet guido with politico. You bid on Financial StabilityOversight Council for a few years they would if you have any thoughts on whether the designation process were important for Financial Institutions that should be changed or improved it anyway and somewhat separate but related question the situation with aqua fax, was wondered if there was anything related to that that might raise systemic issues that they would need to discuss. Stomach so, you must first about the designation process, so during the time that i have been although one firm was designated before i participated. Met life was designated during the time i was there and i have seen how the designation process works. I do think it is important. We saw during the financial crisis that systemically non banking organizations, that there distress could use broad systemic consequences and having the ability to designate firms where the fsoc makes the determination that dress and failure could have systemic repercussions. I believe that is important policy tool for fsoc to have available. Now, its not meant to be a oneway street in the sense that procedures require any reviews here. [inaudible] we should welcome the designation if the model changes in a way that we are led to believe that failure distress would no longer be systemically important, so im satisfied with that process so far. Capital dramatically changed its Business Model and i believe its a process that works, so looking at this as normal recommendations and glad to consider them as part of the fsoc process, but i think its important and basically working. You asked about the facts and that is a serious data breach. We would really urge consumers now to be very careful in monitoring their credit reports and financial situations and through our supervision and working with the base that we supervise and make sure that they take appropriate actions with respect to their business in light of the fact that there could be breaches or fraudulent transactions where information that they might use for example in credit determination could be contaminated by bad data. More generally, i mean, it points to the importance of strong Cyber Security control and attention to Cyber Security, which we do see is one of the most significant risks to the Financial Sector and we are very focused and are banking supervision and making sure that banks have appropriate controls in place and at the facts breach, the importance of that. Bloomberg television and radio. We have talked a lot today about what you are going to do and what you may do, but not necessarily about why. With for rate increases behind you and financial conditions looser than before you began and it wonder if that bothers you or if you are concerned about over stimulating the economy or if you feel inflation could break out much more quickly than we have seen or if you feel there is a financial question because stocks, bonds and real estate are also excessive. How would you slay with the fed is doing, why the fed is doing it to the American People . First of all let me say that the decisions made this year about rates and today about our Balance Sheet are ones we have taken because we filled the us economy is performing well. We are working down our Balance Sheet because we feel the stimulus is no longer needed, so the basic message here is us Economic Performance has been good. The labor market has strengthened substantially. Every major of the labor market, whether its narrow Unemployment Rate, broader Unemployment Rate, number of people working in parttime jobs on fulltime work on the level of job strengthening, difficulty firms are facing in hiring workers, working with confidence and we have surveys about the labor market, all of that is pointing to that and continuing improvement in the labor markets we see sufficient strength in the economy in terms of spending with growth, with its ups and downs, but nevertheless its looks to be Strong Enough in the medium term to support ongoing improvement in the labor market and all of that is good and i think that the American People should feel the steps we are taking to normalize Monetary Policy are ones that we feel are well justified given the very substantial progress we have seen in the economy. Now, inflation is running below and we have talked about that a lot during the last hour. This past year was not clear what the reasons are. I think its not then mysterious in the past, but one way or another we have had four or five years in which inflation was below 2 objective and we are also committed to achieving that the Monetary Policy path of that we follow in the paths that my colleagues are writing down in our projections this morning they think will be appropriate given Economic Conditions are ones that we think are necessary to move inflation back up to 2 and to maintain a strong labor market on the sustainable basis and in making these judgments about path of policy, we have to balance various risks. One risks risk is that if we tighten policy to quickly, we may find out that although we dont think this now, that that inflation shortfall is something that would be persistent and if we tighten to quickly, we could undermine inflation performance either with lowerlevel Inflation Expectation could follow and that could become ingrained in that would be dangerous. So, thats a reason to be cautious about losing Interest Rates when inflation is as low as it is, but on the other hand we have a strong labor market and lower Unemployment RateUnemployment Rate and although job gain is not as strong this year as for example it was in 2016, we are still averaging under the 75000 jobs a month of this year, which is quite a bit of maybe 12,120,000 consistent with stable Unemployment Rate as participation begins to move it down in the manner we expect, so if we dont do anything to move policy accommodation in the labor market tightens and continues to tighten as you mentioned arguably financial conditions overall have not lightened that much. And revising our expectations about policy is the best way to manage that set of risks. Thank you. [inaudible