future. monetary policy so what does all this mean for interest rates? with the economy running close to our dual mandate goals, monetary policy is in the right place. looking ahead, the fed will watch the data and use monetary policy to keep the expansion on track. when growth is well above trend, raising interest rates to keep the economy on a sustainable path is the right decision. equally, when faced with a crisis like the great recession, it ’ s incumbent upon policy makers to use every tool at their disposal to get the economy back on course. it ’ s important to remember the change in the long - run economic fundamentals means that interest rates are likely to be lower than what we saw in the 1990s, for example. in addition, the slope of the yield curve is unlikely to return to levels typically seen in the past. this “ new normal ” clearly has implications for banks, large and small. conclusion in conclusion, the outlook is positive. gdp growth is on track, unemployment remains low, and there are no signs of inflationary pressures building. and while many of you will miss the heady days of the 1990s when growth rates were at 4 percent, the economic fundamentals indicate that these are fundamentally different times. but i ’ m optimistic for bankers like you because of your relationships with customers and the role you play in your communities. please enjoy the conference. i look forward to joining you later for the luncheon. 2 / 3 bis central bankers'speeches 3 / 3 bis central bankers'speeches

will be to slow the pace of decline in our securities holdings. while the committee made no decision at our recent meeting, most fomc participants said it would be appropriate to slow the pace of runoff fairly soon, consistent with the plans we previously discussed. 7 the decision to slow the pace is in no way indicating an imminent cessation of shrinking the balance sheet. rather, by slowing the pace, we're better able to monitor conditions and facilitate a smooth transition to ample reserves. closing i'll close by saying that price stability is the bedrock upon which our economic prosperity stands. the economy has come a long way toward achieving better balance and reaching our 2 percent inflation goal. but we have not seen the total alignment of our dual mandate quite yet. i am committed to achieving maximum employment and price stability over the long term. therefore, i will remain focused on the data, the economic outlook, and the risks as we evaluate the appropriate path for monetary policy to best achieve our goals. thank you. 4 / 5 bis - central bankers'speeches 1 federal reserve bank of new york, global supply chain pressure index. 2 federal reserve bank of new york, inflation expectations are mixed ; consumers express concerns about retaining and finding jobs, april 8, 2024. 3 board of governors of the federal reserve system, federal reserve issues fomc statement, march 20, 2024. 4 board of governors of the federal reserve system, summary of economic projections from the march 19 - 20 fomc meeting, march 20, 2024. 5 board of governors of the federal reserve system, plans for reducing the size of the federal reserve's balance sheet, may 4, 2022. 6 board of governors of the federal reserve system, principles for reducing the size of the federal reserve's balance sheet, january 26, 2022. 7 board of governors of the federal reserve system, minutes of the federal open market committee, march 19 – 20, 2024 ; board of governors of the federal reserve system, transcript of chair powell's press conference, march 20, 2024. 5 / 5 bis - central bankers'speeches