deferrals in private investment plans. therefore, overall investment is projected to fall significantly in 2020. however, as the level of uncertainty recedes, private investment is expected to bounce back. furthermore, the eu budget as well as ngeu funds will provide a substantial boost to government investment during the next year. one of the surprising aspects of this recession has been the extraordinary resilience of the labour market in malta. despite the unprecedented decline in economic activity in 2020, overall employment levels have held up very well. following an increase in unemployment levels in april and may, thereafter unemployment embarked on a gradual downward path. the unemployment rate, though above pre - pandemic levels, remains very low historically and the lowest in the euro area. nonetheless, the outlook remains surrounded by an elevated degree of uncertainty and risks remain firmly tilted to the downside. these relate mainly to the response of consumers and firms when a number of support measures came to an end. furthermore, the recovery in exports may be slower than expected if international tourism – and foreign demand generally – take longer than expected to recover, or if sectors worst hit by the pandemic fail to restructure to remain competitive. turning to the banking sector, the local banks entered the covid - 19 crisis from a solid financial position since they were operating with ample liquidity and high capital ratios, good profitability and declining npls. however, the banking sector, just like virtually all other businesses, was certainly not immune to the effects of the spread of covid - 19. it presented banks with unprecedented challenges, both from an operational perspective and financially. firstly, banks have focused on keeping their employees and customers physically safe and followed the guidelines and recommendations issued by the authorities. the banks ensured that all their business functions continued to operate as seamlessly as possible with the least possible impact on customer services. in particular, their digital banking platforms allowed their customers to continue to undertake banking transactions from the safety of their own homes. overall, domestic banks responded positively to this challenge and they are proving to be instrumental in supporting both businesses and households, and in providing credit to facilitate the economic recovery. banks were pro - active and had voluntarily already began providing moratoria before the coming into effect of directive no. 18. this was necessary to support both businesses and households that had experienced a sudden stop or reduction in income flows as a result of the pandemic. by the end of august, outstanding resident loans subject to moratoria had peaked

discount window operations, and the fed ’ s interactions with other central banks from government accountability office policy reviews. in 1979, president carter appointed paul volcker chairman of the federal reserve with the expectation that volcker would strengthen the central bank ’ s inflation - fighting credibility, even though those steps would likely involve short - term economic and political costs. subsequently, president reagan ’ s support for volcker ’ s politically unpopular disinflationary policies and for the principle of federal reserve independence proved crucial to the ultimate victory over inflation, a victory that set the stage for sustained growth. 11 presidents and other u. s. political leaders have since then regularly testified to the benefits of an independent federal reserve. for instance, president clinton said in 2000, “ [ o ] ne of the hallmarks of our economic strategy has been a respect for the independence and the integrity of the federal reserve. ” 12 president bush noted in 2005, “ it ’ s this independence of the fed that gives people not only here in america [, ] but the world, confidence. ” 13 and president obama said in august 2009, “ we will continue to maintain a strong and independent federal reserve. ” 14 the employment act of 1946 established the objectives of “ maximum employment, production, and purchasing power ” for all federal agencies, whereas the 1977 amendment to the federal reserve act gave the federal reserve the specific mandate of promoting “ maximum employment, stable prices, and moderate long - term interest rates. ” price stability requires that the central bank not attempt to drive employment above its sustainable level, and so in practice the federal reserve has interpreted its mandate to include maximum sustainable employment. the goal of moderate long - term interest rates is frequently dropped from statements of the federal reserve ’ s mandate not because the goal is unimportant, but because moderate long - term interest rates are generally the by - product of price stability. for example, in february 1982, president reagan stated : “ this administration will always support the political independence of the federal reserve board. ” see reagan ( 1982 ). see clinton ( 2000 ). see bush ( 2005 ). see obama ( 2009 ). transparency and accountability central bank independence is essential, but, as i have noted, it cannot be unconditional. democratic principles demand that, as an agent of the government, a central bank must be accountable in the pursuit of its mandated goals, responsive to the public and its elected representatives, and transparent in its policies. transparency regarding monetary policy in particular not only helps