10 Some of these questions ask respondents to assign probabilities to various ranges of outcome – so-called density forecasts.11 Generally, people across a wide range of countries and walks of life appear to be able to answer probabilistic questions, and their expectations are found to be useful in forming predictions of future economic outcomes. The survey of consumer expectations Turning now to the development and use of expectations surveys at the New York Fed, let me first discuss our Survey of Consumer Expectations (SCE). Over the last ten years, we extensively tested and eventually implemented a new survey of households, with the goal of collecting timely and accurate information at high frequency on U.S. consumers’ expectations and decisions on a broad variety of topics. The SCE, launched in June 2013, was designed to fill gaps in existing data collections about consumer expectations and outcomes, to provide a more integrated data approach, and to take advantage of state-of-the-art survey techniques. The SCE is implemented as a monthly, nationally representative survey of about 1,300 household heads.12 Recently the Bank of Canada implemented its own version of the SCE, fielded at a quarterly frequency. The SCE has various components, which are outlined on Slide 2. First, respondents are asked a core monthly module of questions concerning their expectations about various macroeconomic and household-level variables. These questions cover inflation expectations and expectations regarding changes in home prices and the prices of various specific goods and services, such as gasoline, food, rent, medical care, and a college education.

However, we note that the channelling of special drawing rights by EU national central banks to multilateral development banks or individual countries would not be compatible with the EU's legal framework. Supporting international cooperation and strengthening the global economy Recent global shocks and geopolitical tensions have advanced the debate about reconfiguring global supply chains. While the increased resilience associated with less complex supply chains is desirable, a less integrated world economy also entails costs. It weakens the diversification of global production and, in particular, the efficient allocation of resources globally, which has an adverse impact on welfare across the world. Geopolitical fragmentation may also affect the global economy via financial channels. The availability of external financing may be impeded, and lower foreign direct investment would hinder the diffusion of technology and thus productivity growth. All of these developments require our immediate attention; however, we are not losing sight of longer-term challenges and are keeping up our efforts to address the existential crisis of climate change. As part of our action plan to incorporate climate change considerations in our monetary policy framework, we decided to tilt corporate bond holdings towards issuers with better climate performance, through the reinvestment of redemptions starting in October 2022. Our climate-related financial disclosures showed last month that this effort was helping reduce the carbon footprint of our corporate sector portfolios. In addition, we are adjusting the collateral framework, introducing climate-related disclosure requirements, and enhancing risk management practices. Recently, we have also issued statistical indicators for climate-related analysis.