, latino small businesses are more concentrated in a few industries and significantly underrepresented in the professional, scientific and technical services sectors, which also tend to be the most lucrative. third, the size of the latino population in a given metro area does not mean that there is a larger share of latino - owned businesses in the same — which is, to me, somewhat counterintuitive. digging into and understanding the causes of these issues and identifying possible paths forward is not only an imperative but an opportunity, and of course the focus of much of today ’ s agenda. it is clear that there is a pressing need for expanding technical support, diversifying sources of financing, especially at the micro level, and, in the case of the geographic conundrum, further collaborating on policy and community advocacy. i very much look forward to today ’ s discussion and thank you again for your participation. it is now my pleasure to introduce nancy lee of interise, marlene orozco from slei, and claire kramer from the new york fed. 2 / 2 bis central bankers'speeches

of gdp. as shown in ( figure 6 ), which shows these two components over time, the business balance is currently unusually high ; that is, businesses have very high cash flows relative to their investment outlays. this suggests that some of the required adjustment could occur by fostering greater investment spending as a share of gdp. for this to occur, it will be important that economic policies promote long - term growth and financial stability, and ensure that the united states is a competitive place to base production, with a well - functioning infrastructure, a skilled workforce and a reasonable tax and regulatory system. in addition, it seems desireable that some of the adjustment should take place in the trade sector. although a current account deficit of 3 percent of gdp by itself would be sustainable over time, for the household balance to remain close to current levels and the public balance to sharply narrow, then the current account may need to move further toward balance. for this to occur, there needs to be two offsetting adjustments. on one hand, the u. s. economy must be reoriented toward global demand and stronger net exports. on the other hand, there will have to be offsetting adjustments elsewhere in the world. after all, on a global basis, the current account balance – properly measured – must sum to zero. this means see " securing the recovery and building for the future. " remarks by william dudley at united states military academy at west point, new york, november 17, 2011, for a more detailed discussion of this issue. third quarter 2011, the latest period for which data are available. the federal public balance is roughly equivalent, though not identical, to the federal budget deficit ; the overall public balance numbers provided here include state and local government. bis central bankers ’ speeches that countries with significant trade surpluses will need to reorient their economies over time toward increasing domestic demand and running smaller trade surpluses. to sum up, the united states faces substantial fiscal challenges in the years ahead. and, in one important respect – net interest expense – these challenges may be more daunting than fully appreciated currently. in particular, the interest bill on the growing federal debt burden has been temporarily restrained by the low level of interest rates and high level of remittances from the federal reserve to the treasury. in addition, while significant fiscal adjustments must take place, it is important to recognize that such efforts will necessitate offsetting shifts in private domestic spending and production both here and abroad.