•Financial system now safer •Financial institutions are able to operate in sensible fashion. •Some lending sectors are doing well •It is not the policy of the Fed to be smaller •Large institutions should internalize potential risks •Been in a moderate elongated economy •Growth not too much about trend •Made fair amount of progress but not enormous momentum •We're in globally disinflationary environment •Inflation running below target in global disinflationary environment •Should look for tangible evidence of wage pickup •Been some years since inflation has approached target •On inflation, should look through dollar ... (full story)