huge external shock. however, the extent of policy action is limited by the available fiscal space, so this crisis has again highlighted the importance of building fiscal buffers – prevention. on our first two panels today, we'll have a chance to talk about building resilience in areas most hit by the recent shocks – the energy sector and supply chains – while at the same time being mindful of the importance of fiscal prudence. more broadly, in addition to prevention and mitigation policies, for building resilience it is also essential to rebuild trust in governance structures, institutions and data. this is because effective crisis responses depend on public acceptance and adherence to necessary measures and policies. the higher is the trust in the institutions, the easier it is done. and institutions themselves build credibility in the times of crisis. the second lesson is adaptability. although resilience and adaptability are linked, they are different in important ways. resilience entails enduring a challenge, while adaptability refers to the ability to thrive beyond it. in the eu, progress on this front is evident. we have been moving from reactive policies to strategic decision - making. the recent crises brought about some tectonic institutional enhancements : the early months of the pandemic led to the establishment of the eu recovery fund, which constituted a breakthrough for the financial solidarity of member states. the next generation eu package provided an anchor for investment in the 2 / 4 bis - central bankers'speeches green and digital transitions in a way that will support resilience and adaptability in the long term. finally, the repowereu plan aims to end dependence on russian fossil fuels, but also entails measures for energy savings, new energy storage rules, and a strategy to buy energy together. that being said, adaptability is difficult to nurture, as we often tend to stick to existing patterns of behaviour and decision - making, especially when there is no imminent crisis that would push changes and force us to think outside the box. the last lesson that i'd like to mention ( though you can derive more ) is cooperation. while some initiatives during the pandemic demonstrated willingness for increased global cooperation and solidarity in crisis times ( for instance the imf's emergency financing, debt relief initiatives, and sdr allocation ), the more recent trade and investment fragmentation trends may put in jeopardy global policy coordination efforts. and while business strategies such as near - shoring and friend - shoring may be justified by

work, while layoffs remain low. in addition to some cooling in labor demand, a mismatch between the skills of the new workers and available jobs could further raise unemployment, suggesting that higher unemployment has been partly driven by the stronger supply of workers. monetary policy in the monetary policy function, we rely on the best data available, but without question the data are imperfect. we also consider a range of possible future economic conditions to help inform our monetary policy decisionmaking, which requires that we make assumptions and predictions about the future. looking back over time, our crystal ball has never been perfect at predicting the risks that may emerge, how those risks may influence economic conditions, and how that should be considered in analyzing our monetary policy goals. to illustrate this point in terms of recent events, we have not yet met our inflation goal and, as i noted earlier, progress in lowering inflation appears to have stalled. i see greater risks to the price stability side of our mandate, especially while the labor market remains near full employment, but it is also possible that we could see a deterioration in labor market conditions. these predictions always come with a dose of humility, however, particularly because they rely on imperfect data. the labor market data have become increasingly difficult to interpret, as surveys and other measurements struggle to incorporate large numbers of new workers and to account for other influences that we do not yet fully understand and have not yet been able to accurately measure. as the dynamics of immigration and business creation and closures continue to change, it has become increasingly difficult to understand the payroll employment data. in light of the dissonance created by conflicting economic signals, measurement challenges, and data revisions, i remain cautious about taking signal from only a limited set of real - time data releases. while the mandate for monetary policy is straightforward, its execution is complex. our decisions are guided by our dual mandate, but arriving at them entails careful analysis of sometimes flawed data, and informed judgments about unknowable future conditions. bank regulation and supervision in conducting bank regulation and supervision, the federal reserve promotes the safe and sound operation of individual banks, and the stability of the broader financial system. these bank regulatory goals have obvious synergies - individual banks operating in a safe and sound manner tends to create conditions that promote financial stability in the banking sector. the fed's bank regulatory objectives include implicit tradeoffs : we aim to foster a banking system that is safe, sound, and efficient, while 4 / 9 bis - central