manage their banks ’ affairs in such a way as to avoid the need to make adverse disclosures. although the disclosure regime does not rely on the mass readership of disclosure statements by depositors, the reserve bank of new zealand is encouraging depositors to take a greater interest in their banks ’ disclosures. over much of last year we actively promoted publicity about the new disclosure arrangements. and we prepared a “ user ’ s guide ” to assist depositors ( and their agents ) to understand the disclosures being made by banks. the user ’ s guide is now available in every bank branch in the country. while it is unlikely to be a “ best seller ”, it is encouraging to note that there has, in fact, been a surprising degree of interest in it from the public. we hope that, over time, an increasing proportion of depositors will take a keener interest in their banks ’ financial condition. another observation made about the new framework is that our approach places an excessive emphasis on the role of bank directors - that we are asking too much of them. to illustrate this point, during the review process, i had a visit from the chief executive of one major international bank with an operation in new zealand. he had come to protest strongly at the requirement that bank directors would have to sign the disclosure statements every quarter and attest to the appropriateness of their risk management systems. when i asked why, he said “... bank directors understand absolutely nothing about banking... ”. this comment is quite unfair about many bank directors, of course, but there is an uncomfortable element of truth in it in some cases. the blame for this situation almost certainly lies, in part, on a supervision regime which had assumed too much of the responsibility for the viability of banks. we very much hope that a regime which will continue to have some key regulations, but which is based primarily on market disclosure and director attestations, will improve that situation. early indications of the effects of the disclosure regime although it is far too early to make conclusive assessments of the success or otherwise of the new supervisory approach, there have been some encouraging signs that the disclosure requirements are meeting a number of their objectives. i will briefly highlight a few of these. we have been encouraged by the fact that the financial news media in new zealand have taken a close interest in the new bank disclosure regime. the quarterly disclosure statements have received quite detailed scrutiny from the news media, resulting in greater and more focused public

michelle w bowman : high inflation and the outlook for monetary policy speech by ms michelle w bowman, member of the board of governors of the federal reserve system, at the american bankers association community banking conference, palm desert, california, 21 february 2022. * * * before we get to our conversation on community banking, i would like to briefly discuss my outlook for the u. s. economy and my view of appropriate monetary policy. 1 as i see it, the main challenge for monetary policy now is to bring inflation down without harming the ongoing economic expansion. inflation is much too high. last year i noted that inflationary pressures associated with strong demand and constrained supply could take longer to subside than many expected. since then, those problems have persisted and inflation has broadened, reaching the highest rate that americans have faced in forty years. high inflation is a heavy burden for all americans, but especially for those with limited means who are forced to pay more for everyday items, delay purchases, or put off saving for the future. i intend to support prompt and decisive action to lower inflation, and today i will explain how the fed is pursuing this goal. in the near term, i expect that uncomfortably high inflation will persist at least through the first half of 2022. we may see signs of inflation easing in the second half of the year, but there is a substantial risk that high inflation could persist. in january, the consumer price index rose to a 12 - month rate of 7. 5 percent, which, consistent with other recent monthly readings, was even higher than expected. employment costs for businesses, as measured by average hourly wages, also rose last month. and continued tightness in the labor market indicates that upward pressure on wages and other employment compensation is not likely to moderate soon. my base case is that inflation will moderate later this year, which will depend, in part, on appropriate actions by the federal open market committee ( fomc ). but with wage growth lagging behind inflation for the past year, many families may find it challenging to make ends meet and continued rising home prices will likely prevent many from entering the housing market. in addition, rising costs and hiring difficulties continue to be burdens for small businesses. turning to the labor market, which continues to tighten, indications are that the omicron infection surge earlier this year has not left a negative imprint on the economy or slowed job creation. i expect to see continued strength in the job market this year, with further gains