stalling any further progress or even causing inflation to reaccelerate. finally, there is a risk that increased immigration and continued labor market tightness could lead to persistently high core services inflation. given the current low inventory of affordable housing, the inflow of new immigrants to some geographic areas could result in upward pressure on rents, as additional housing supply may take time to materialize. with labor markets remaining tight, wage growth has been elevated at around or above 4 percent, still higher than the pace consistent with our 2 percent inflation goal, given trend productivity growth. in light of these risks, and the general uncertainty regarding the economic outlook, i will continue to watch the data closely as i assess the appropriate path of monetary policy. the frequency and extent of data revisions over the past few years make the task of assessing the current state of the economy and predicting how the economy will evolve even more challenging. i will remain cautious in my approach to considering future changes in the stance of policy. it is important to note that monetary policy is not on a preset course. in my view, we should consider a range of possible scenarios that could unfold when considering how the fomc's monetary policy decisions may evolve. my colleagues and i will make our decisions at each fomc meeting based on the incoming data and the implications for 2 / 7 bis - central bankers'speeches and risks to the outlook. while the current stance of monetary policy appears to be at a restrictive level, i remain willing to raise the target range for the federal funds rate at a future meeting should the incoming data indicate that progress on inflation has stalled or reversed. restoring price stability is essential for achieving maximum employment over the longer run. grappling with the unintended consequences of bank capital reform i will turn now to the issue of bank capital reform, and the implications of adopting and implementing the basel iii " endgame " standards both in the united states and around the world. considering capital and debt requirements in the aggregate capital requirements are an important component of the prudential regulatory frameworks and interconnected banking and financial systems around the world. as you know, the u. s. has lagged our e. u. and u. k. counterparts in fully implementing the basel iii capital standards. in july 2023, the u. s. federal banking agencies issued a public consultation on implementing what the u. s. calls the basel iii " endgame " capital reforms. 2 the response to the u

first, addressing the problems that emerged in the largest, most complex financial firms during the crisis and, second, creating a better balance with respect to regulation and oversight between banks and nonbank financial firms. the federal reserve believes that these are the right goals for bis central bankers ’ speeches reform. we are committed to working with the other u. s. financial regulatory agencies to implement the act and related reforms in a manner that both achieves the law ’ s key objectives and appropriately takes into account the risk profiles and business models of smaller banking firms, including community banks. before i conclude my remarks, let me say a few words about the transfer of thrift holding company supervisory authority to the federal reserve. we have been working closely with the office of thrift supervision, the office of the comptroller of the currency, and the federal deposit insurance corporation to make this transfer as smooth as possible, and progress so far has been good. the federal reserve believes that any company that controls a depository institution should be held to appropriate prudential standards, including those for capital, liquidity, and risk management. as such, we intend to create an oversight regime for thrift holding companies that is consistent with, and is as rigorous as, the supervisory regime we apply to bank holding companies. that said, we appreciate that thrift and bank holding companies differ in important ways, play different roles in our economy, and will remain governed by different statutes. we will be mindful of these differences and of the unique characteristics of the thrift industry as we develop our supervisory approach to thrift holding companies. conclusion my colleague, governor duke, recently told our examiners that “ community bankers are creative, committed, stubborn, and resilient. ” i know she won ’ t mind my repeating that sentiment here, and i ’ m sure most of the community bankers in this room would wear those words as a badge of honor. community banks face substantial challenges in the months and years to come, including still - difficult economic conditions, continued uncertainties in real estate and other key markets, and a changing regulatory environment. but community banks have faced difficult times before, and the industry has remained vibrant and resilient. i am confident that community banking will successfully navigate these new challenges as well. thank you for what you do every day to meet the needs of your communities and to help our economy grow stronger. bis central bankers ’ speeches