which will also create room for further tax cuts and absorb the fiscal costs of population ageing. this reform agenda, as well as the urgent structural reforms relating to product, labour and financial markets, will be addressed in the forthcoming broad economic policy guidelines. overall, such reforms reflect the key challenge for the euro area to expand its potential for non - inflationary growth and to reduce its high level of unemployment. the governing council calls upon member states to make faster progress in accelerating and deepening structural reforms in order to provide economic agents with the proper incentives to enhance efficiency and entrepreneurship and to progress towards a knowledge - based economy as proclaimed in the lisbon agenda and confirmed in barcelona. we are now at your disposal for questions.

keep inflation in focus while the labor market appears to be in balance and the unemployment rate continues to be at historically low levels. by the time of our march meeting, we will have received two inflation and two employment reports. i look forward to reviewing the first quarter inflation data, which, as i noted earlier, will be key to understanding the path of inflation going forward. i do expect that inflation will begin to decline again and that by year - end it will be lower than where it now stands. looking forward, it is important to note that monetary policy is not on a preset course. at each fomc meeting, my colleagues and i will make our decisions based on the incoming data and the implications for and risks to the outlook and guided by the fed's dual - mandate goals of maximum employment and stable prices. i will also continue to meet with a broad range of contacts as i assess the appropriateness of our monetary policy stance. bringing inflation in line with our price stability goal is essential for sustaining a healthy labor market and fostering an economy that works for everyone in the longer run. perspective on mutual and community banks turning to banking, i will start with a brief discussion of the important role of mutual banks in the banking system before addressing other bank regulatory issues. one of the unique characteristics of the u. s. banking system is the broad scope of institutions 3 / 12 bis - central bankers'speeches it includes and the wide range of customers and communities it serves. given this institutional diversity, regulators must strive to foster a financial system that enables each and every bank, no matter its size, to thrive, supporting a vibrant economy and financial system. mutual bank issues in the northeast, everyone is familiar with mutual banks given their significant presence in this region. since the early 1800s, these banks have been dedicated to serving their local communities. 2 their ownership structure differs from traditional banks in that mutuals are owned by their depositors, rather than by shareholders. like other community banks, they focus on local issues that are important to their communities and to their depositors. many of the challenges mutual banks face are similar to those faced by other financial institutions, including competition from other banks, credit unions, and non - banks. but mutual banks also face unique issues that can add cost and expense to their operations. two issues i would like to discuss are the challenges mutual institutions face raising capital, and unique procedural hurdles mutuals face in managing the dividend process. while these issues are unique to