sveriges riksbank act see, for instance, account of monetary policy 2022. 12 −18. 1 billion. this is considerably less than a third of the target level for equity and, in accordance with the riksbank act, the riksbank shall submit a petition to the riksdag for the restoration of equity. we are currently in the process of finalising the riksbank ’ s annual accounts. the preliminary result for the 2023 financial year is a profit of around sek 16 billion. after allocation of profits, the riksbank ’ s equity is expected to amount to sek - 2 billion. the riksbank will use this amount as a starting point in march 2024, when the bank decides on the petition to the riksdag on the restoration of equity. in the law, as i mentioned, the main rule is that equity must be restored to an inflation - adjusted base level, which, with indexation according to the cpi for december 2023, means sek 41. 8 billion. 19 this will be the starting point for the amount in the riksbank ’ s petition on equity restoration. long - term self - financing for the sake of financial independence a starting point for the riksbank act is thus that the riksbank can achieve financial independence by using its cost - free capital to obtain sufficient interest income to fund its own administrative costs. cost - free capital, as i mentioned above, includes the cash supply and equity. the legislator thus assessed that sek 60 billion, adjusted for inflation, is an appropriate target level for the riksbank ’ s equity and that two - thirds of this is a reasonable basic level of equity. this assessment was based on calculations made by the riksbank committee, including the assumptions that the cash supply stays unchanged in nominal terms, that the riksbank ’ s administrative costs increase with an inflation rate of 2 per cent per year from a starting level of around sek 850 million and that the annual real return on the riksbank ’ s financial assets is 1 per cent. 20 several of these assumptions were uncertain, as the riksbank committee also emphasised, and, since the riksbank act began to be drafted, the conditions for the riksbank ’ s long - term self - financing have changed. one change is that the riksbank ’ s costs have increased as a result of new statutory tasks and new needs in our area of activity.

the labor market is strong. as always, challenges remain. both the initial shutdown and the subsequent reopening of the economy were without precedent. the economy has rapidly gained strength despite the ongoing pandemic, giving rise to persistent supply and demand imbalances and bottlenecks, and thus to elevated inflation. we know that high inflation exacts a toll, particularly for those less able to meet the higher costs of essentials like food, housing, and transportation. we are strongly committed to achieving our statutory goals of maximum employment and price stability. we will use our tools to support the economy and a strong labor market and to prevent higher inflation from becoming entrenched. we can begin to see that the post - pandemic economy is likely to be different in some respects. the pursuit of our goals will need to take these differences into account. to that end, monetary policy must take a broad and forward - looking view, keeping pace with an ever - evolving economy. 1 / 2 bis central bankers'speeches over the past four years, my colleagues and i have continued the work of our predecessors to ensure a strong and resilient financial system. we increased capital and liquidity requirements for the largest banks — and currently, capital and liquidity levels at our largest, most systemically important banks are at multidecade highs. we worked to improve the public ’ s access to instant payments, intensified our focus and supervisory efforts on evolving threats such as climate change and cyberattacks, and expanded our analysis and monitoring of financial stability. we will remain vigilant about new and emerging threats. we also updated our monetary policy framework, drawing on insights from people and communities across the country, to reflect the challenges of conducting policy in an era of persistently low interest rates. congress has assigned the federal reserve important goals and has given us considerable independence in using our tools to achieve them. in our democratic system, that independence comes with the responsibility of transparency and clear communication, to keep the public informed and enable effective legislative oversight. that duty takes on even greater significance when the fed must take extraordinary actions in times of crisis. in order to facilitate that transparency, and to earn your trust and that of the american people, i have made it a priority to meet regularly and frequently with you and your elected colleagues. i commit to continuing that practice if i am confirmed to another term. the federal reserve works for all americans. we know our decisions matter to every person, family, business,