at https : / / www. federalreserve. gov / data / sloos. htm. - 2while the u. s. banking and financial system remains sound and resilient, the recent failures of three u. s. banks with unique risk profiles have added to the uncertainty surrounding the economic outlook. this uncertainty is further complicated by stock price movements among regional banks. should inflation remain high and the labor market remain tight, additional monetary policy tightening will likely be appropriate to attain a sufficiently restrictive stance of monetary policy to lower inflation over time. i also expect that our policy rate will need to remain sufficiently restrictive for some time to bring inflation down and create conditions that will support a sustainably strong labor market. of course, the economic outlook is uncertain and our policy actions are not on a preset course. i will consider the incoming economic and financial data during the intermeeting period and its implications for the economic outlook in determining my view of the appropriate stance of monetary policy. i will look for signs of consistent evidence that inflation is on a downward path when considering future rate increases and at what point we will have achieved a sufficiently restrictive stance for the policy rate. in my view, the most recent cpi and employment reports have not provided consistent evidence that inflation is on a downward path, and i will continue to closely monitor the incoming data as i consider the appropriate stance of monetary policy going into our june meeting. my remarks today will address the recent bank failures in the united states and how the evolution of the banking industry has influenced and amplified bank deposit run risk. i will then discuss supervision, regulation, bank management culture, and technology, and how each of these changes the dynamics of our approach to building a stronger and more resilient financial system. finally, i will close with my views on the importance of approaching the future in a deliberate, evidence focused, and thoughtful manner. - 3the evolving context of banking and bank failures those who are involved in the business of banking will not find this shocking, but it is a fundamental fact that banking involves risk. it is inherent in, and foundational to, the business of banking : banks take demand deposits — a short - term liability — and make term loans — creating a long - term asset. absent this intentional risk - taking, banks could not play their indispensable role of credit provision in the economy. there are many other risks, with the specific risks that banks face today as varied as the wide range of

s producers shifted between 300, 000 and 500, 000 jobs abroad during the past three years, an average of between 100, 000 and 167, 000 jobs per year since 2000. this estimate includes jobs both inside and outside manufacturing ( that is, it includes both goods and services ) and reflects increased imports from foreign affiliates of u. s. corporations. based on this analysis, goldman - sachs argues that, over the next several years, offshoring of business services may rise to several hundred thousand jobs per year. again, to gain perspective, we should compare these estimates with the overall rate of job displacement in the united states. two hundred thousand jobs per year amount to a bit more than 1 percent of the 15 million or so jobs that are lost each year in the u. s. economy for all reasons. quantitatively, outsourcing abroad simply cannot account for much of the recent weakness in the u. s. labor market and does not appear likely to be an important restraint to further recovery in employment. moreover, a balanced discussion of outsourcing abroad should reflect the fact that, just as u. s. firms use the services of foreigners, foreign firms make considerable use of the services of u. s. residents. an underappreciated fact is that, in contrast to its trade deficit in goods, the united states runs a significant trade surplus in services. the official trade data do not have direct measures of outsourcing of services abroad, but much of what we would consider offshoring is likely included under the heading “ business, professional, and technical services, ” a category of trade in services. 9 in 2002, the latest year for which complete data are available, the united states exported nearly $ 29 billion in business services. against these exports, u. s. imports of business services in 2002 totaled less than $ 11 billion ( about 0. 1 of 1 percent of u. s. gdp ), for an overall surplus in business services trade of $ 18 billion. moreover, u. s. exports of business services have increased $ 3. 5 billion since 2000, a period during which imports of business services increased only $ 2 billion. 10 an important reason for the u. s. trade surplus in business services is that this country provides many high - value services to users abroad, including financial, legal, engineering, architectural, and software development services, while many of the services imported by u. s. companies are less sophisticated and hence of lower cost.