the congress and the administration to work in good faith to quickly develop and implement a credible plan to achieve long - term sustainability. i hope, though, that such a plan can be achieved in the near term without resorting to brinksmanship or actions that would cast doubt on the creditworthiness of the united states. what would such a plan look like? clear metrics are important, together with triggers or other mechanisms to establish the credibility of the plan. for example, policymakers could commit to enacting in the near term a clear and specific plan for stabilizing the ratio of debt to gdp within the next few years and then subsequently setting that ratio on a downward path. indeed, such a trajectory for the ratio of debt to gdp is comparable to the one proposed by the national commission on fiscal responsibility and reform. 4 to make the framework more explicit, the president and congressional leadership could agree on a definite timetable some evidence that interest rates can rise in response to even a short, temporary period during which the treasury cannot make payments on a relatively small amount of maturing securities is presented by zivney and marcus ( 1989 ). see national commission on fiscal responsibility and reform ( 2010 ). bis central bankers ’ speeches for reaching decisions about both shorter - term budget adjustments and longer - term changes. fiscal policymakers could look now to find substantial savings in the 10 - year budget window, enforced by well - designed budget rules, while simultaneously undertaking additional reforms to address the long - term sustainability of entitlement programs. such a framework could include a commitment to make a down payment on fiscal consolidation by enacting legislation to reduce the structural deficit over the next several years. conclusion the task of developing and implementing sustainable fiscal policies is daunting, and it will involve many agonizing decisions and difficult tradeoffs. but meeting this challenge in a timely manner is crucial for our nation. history makes clear that failure to put our fiscal house in order will erode the vitality of our economy, reduce the standard of living in the united states, and increase the risk of economic and financial instability. references committee for a responsible federal budget ( 2010 ). the crfb medium and long - term baselines. washington : crfb, august. congressional budget office ( 2010 ). the long - term budget outlook. washington : congressional budget office, june ( revised august ). national commission on fiscal responsibility and reform ( 2010 ). the moment of truth : report of the national commission on fiscal

jerome h powell : regulation and supervision of community banks speech by mr jerome h powell, member of the board of governors of the federal reserve system, at the annual community bankers conference, sponsored by the federal reserve bank of new york, new york city, 14 may 2015. * * * the views i express here today are my own, and not necessarily those of any other person in the federal reserve system. good morning. i am delighted to join you here today to discuss the state of community banking and issues of importance to community banks like yours. new york may be home to wall street, but, just like the rest of the country, most of the banks in the second district are community banks. there are more than 170 banking organizations here with less than $ 10 billion in assets, serving millions of customers. community banks play an essential role in our financial system, supporting the economic health and vitality of the communities you serve. unlike many of your larger competitors, community banks offer customers face - to - face interaction with a local banker who has the authority to make the final decision on a loan – a banker with a long - term investment in the community who will not be moving to another branch in a new town within a few years. community bankers benefit from local knowledge and relationships that often lead to more successful and efficient lending decisions. these advantages have enabled many community banks in the second district and around the country to maintain or increase their local market shares while competing with larger regional and money center banks, and i expect that they will continue to do so. nonetheless, community banks face significant challenges today. the number of community banks has declined significantly over the past decade. the federal deposit insurance corporation ’ s “ problem list ” of at - risk banks has declined from 888 at the peak of the financial crisis to 291 at the end of 2014, but that is still well above typical pre - crisis levels of fewer than 100. there are several factors driving consolidation and elevating the number of problem banks, beyond the lasting effects of the recession. for starters, community banks have been challenged in some of your traditional product lines by competition from larger financial institutions that can achieve lower costs through economies of scale. at the same time, historically thin net interest margins have constrained profitability, and, although not aimed at community banks, new post - crisis regulations meant to strengthen the financial system are coming into place that require additional management attention. the federal reserve recognizes the importance of a healthy community banking sector for our nation