household savings from bank deposits to equity holdings. we need a cmu that is ambitious ; it should come with a roadmap in terms of goals and milestones to be achieved. broad objectives such as deepening financial integration and achieving risk sharing should be matched with specific proposals such as facilitating funding for corporates in general and for smes in particular. key areas such as securitisation, insolvency regimes, and tax legislation need to be prioritised. cross - border barriers to clearing and settlement should be removed. financial stability concerns also need to be addressed, including an assessment of whether additional macro - prudential instruments should be developed. the proper regulation of financial products and supervision of financial entities, such as insurers and pension funds, as well as full transparency of new financial products, should be put in place as they are essential to convincing households to switch to more market - based forms of saving. in this respect, enhanced powers for the european securities markets authority ( esma ) and better coordination with the national competent authorities will help strengthen the implementation and enforcement of rules. conclusion allow me to conclude. the euro area is experiencing a resilient recovery, sustained by monetary policy. outturns for high - frequency data so far this year point to continued momentum. but it is too soon to declare complete success : we have yet to secure a sustained convergence in inflation towards our goal of close to but below 2 % over the medium term. with the recovery underway, we should aim to build euro area resilience to future shocks. in this 9 / 10 bis central bankers'speeches regard, clear progress on cmu will help put in place the right conditions to encourage a greater degree of financial integration in the euro area. this in turn will help dampen the asymmetric effects of future shocks, bolster the effectiveness of monetary policy and enhance the welfare of our citizens. 1 asdrubali, p., sorensen, b. and yosha, o., “ channels of interstate risk sharing : united states 1963 – 1990 ”, quarterly journal of economics, vol. 111, 1996, pp. 1081 – 1110 ; athanasoulis, s. and van wincoop, e., “ risk sharing within the united states : what do financial markets and fiscal federalism accomplish? ”, review of economics and statistics, vol. 83, 2001, pp. 688 – 698. see also del negro, m

range would likely become appropriate before year - end. but let me emphasize again that these are projections based on the anticipated path of the economy, not statements of intent to raise rates at any particular time. a decision by the committee to raise its target range for the federal funds rate will signal how much progress the economy has made in healing from the trauma of the financial crisis. that bis central bankers ’ speeches said, the importance of the initial step to raise the federal funds rate target should not be overemphasized. what matters for financial conditions and the broader economy is the entire expected path of interest rates, not any particular move, including the initial increase, in the federal funds rate. indeed, the stance of monetary policy will likely remain highly accommodative for quite some time after the first increase in the federal funds rate in order to support continued progress toward our objectives of maximum employment and 2 percent inflation. in the projections prepared for our june meeting, most fomc participants anticipated that economic conditions would evolve over time in a way that will warrant gradual increases in the federal funds rate as the headwinds that still restrain real activity continue to diminish and inflation rises. of course, if the expansion proves to be more vigorous than currently anticipated and inflation moves higher than expected, then the appropriate path would likely follow a higher and steeper trajectory ; conversely, if conditions were to prove weaker, then the appropriate trajectory would be lower and less steep than currently projected. as always, we will regularly reassess what level of the federal funds rate is consistent with achieving and maintaining the committee ’ s dual mandate. i would also like to note that the federal reserve has continued to refine its operational plans pertaining to the deployment of our various policy tools when the committee judges it appropriate to begin normalizing the stance of policy. last fall, the committee issued a detailed statement concerning its plans for policy normalization and, over the past few months, we have announced a number of additional details regarding the approach the committee intends to use when it decides to raise the target range for the federal funds rate. federal reserve transparency and accountability these statements pertaining to policy normalization constitute recent examples of the many steps the federal reserve has taken over the years to improve our public communications concerning monetary policy. as this committee well knows, the board has for many years delivered an extensive report on monetary policy and economic developments at semiannual hearings such as this one. and the fomc has long announced its monetary policy