charles i plosser : a perspective on the economy and monetary policy speech by mr charles i plosser, president and chief executive officer of the federal reserve bank of philadelphia, to the greater philadelphia chamber of commerce, philadelphia, pennsylvania, 14 january 2015. * * * the views expressed are my own and not necessarily those of the federal reserve system or the fomc. highlights • president charles plosser gives his views on the u. s. economy and discusses the importance of four principles to sound monetary policy. • president plosser believes that the appropriate way to make policy systematic, or rule - like, is to base policy decisions on economic conditions. monetary policy should be data dependent, not date dependent. • he thinks policymakers should describe the reaction function that determines how the current and future policy rates will be set depending on economic data. • president plosser proposes the creation of a regular monetary policy report to help improve communication while enhancing the transparency and accountability of the fed. introduction thank you, richard ( green, ceo and vice chairman of firstrust ). i am delighted to speak with so many of philadelphia ’ s business leaders this morning. a couple of years ago, richard served on the philadelphia fed ’ s advisory council of community bankers and as our district ’ s representative to a similar council at the national level. so, he knows firsthand about the intricacies of the fed ’ s structure as america ’ s decentralized, central bank, with 12 independently chartered federal reserve banks, overseen by the board of governors in washington, d. c. it is a model that has worked for a century, bringing together a rich mosaic of perspectives as we discuss policy. yet, it requires that i remind the audience that the views i express today are my own and do not necessarily reflect those of the federal reserve system or my colleagues on the federal open market committee ( fomc ). i will begin with a brief overview of the economy. yet, because you have already heard several views of the year ahead – including the report of your membership survey – i plan to spend most of my time giving you a longer - term perspective on what i think is a sound approach to monetary policy. economic overview we began 2014 with a severe winter, which led to a first - quarter decline in gdp of 2. 1 percent. after that bleak start, though, we saw robust gdp growth in the second and third quarters of 4. 6 percent and 5. 0 percent

##os. the securities and exchange commission also received hundreds of investment scam complaints within 2019 and 2020. these cases could be resolved quickly once the fcp act is in place. this act will empower financial regulators such as the bangko sentral ng pilipinas, the insurance commission, the securities and exchange commission, and the cooperative development authority to expedite the adjudication of reasonable monetary claims more efficiently, fairly and openly, all to the benefit of the consumers. 4. one of the positive unintended consequences of the covid pandemic has been the dramatic rise in the use of digital financial services. but the surge brought with it graver risks. in fact, complaints related to the use internet banking and mobile banking account for 45. 2 percent of the 1 / 3 bis central bankers'speeches total complaints in 2021. hackers and scammers took advantage of the digital infrastructure and consumer vulnerability to perpetrate crime. based on bsp monitoring, the increased use by the public of digital financial services has given rise to a wave of cyber and financial crimes. in 2020, hacking and other malware attacks surged by a whopping 2324 percent from the previous year, while phishing and other social engineering schemes increased 302 percent from 2019. over the same period, account takeover or identity theft rose 2. 5 percent, while card not present fraud fell 26. 8 percent. taken together, the top three cybercrimes in 2020 were first, account takeover or identity theft ; second, phishing and other social engineering schemes ; and third, card not present fraud. notably, skimming and atm - based cyber fraud losses significantly declined from 2018 – 2021 due to the implementation of emv chip technology, but fraud actors were quick to shift their tactics. clearly, all of us as financial consumers, are exposed to various risks, frauds and cyber threats that could result in loss of income. worse, it could result in loss of confidence in the financial system. 5. should there be a loss of confidence in the financial system, consumers might opt to keep their savings and investments away from the formal financial system – thus undermining the financial system ’ s ability to intermediate and facilitate the flow of funds to productive sectors of the economy. 6. the enactment of the fcp act is envisioned to provide an armor of protection to all financial consumers. it will ensure that relevant government institutions and financial regulators will be fully equipped with the legal authority to enforce prudent