is often referred to as the " new oil " due to its immense value and potential for driving economic growth, innovation and the positive impact it can have when used responsibly. however, when used irresponsibly, several negative consequences follow 1 / 5 bis - central bankers'speeches such as privacy violations, identity theft and frauds, manipulation using targeted advertisements, etc. in fact, irresponsible data usage not only poses risks to individuals, but undermines trust in the digital ecosystem and may even have financial stability and national security implications. understanding financial stability vulnerabilities 7. understanding financial stability vulnerabilities emerging from cyber perspective is critical because existing capital and liquidity prescriptions may not mitigate the effect of a cyber event the same way they mitigate financial losses. for instance, capital and liquidity can provide the financial resources to respond to a cyber incident but may not speed up the process of recovering systems or data. 8. cyber - attacks can disrupt critical financial operations within banks, rendering them unable to process transactions, access customer accounts, or execute essential functions. this disruption can result in a loss of confidence in the banking system, as customers and businesses may face difficulties in accessing their funds or conducting normal financial activities. such disruptions can lead to financial instability, especially if they affect multiple banks or are prolonged. 9. enhancements in service offerings, such as longer operating hours of payment systems and shorter clearing and settlement windows, leave the financial system with fewer service breaks in which operations can be restored after a cyber incident. uncertainty about the nature and extent of an incident may also prompt runs on counterparties, competitors, or unaffected segments of the financial entity's operations. 10. indeed, the 2021 ransomware attack on colonial pipeline, though not a financial entity, highlighted the interconnectedness of critical infrastructure systems and the potential cascading effects on various sectors, including banking. it illustrated how a cyberattack could spark a run, in this case, a run - on gas stations, amplifying the effects well beyond the original shock. 11. while there is extensive ongoing supervisory attention to entity - level cyber resilience, data gaps remain. at the entity level, there is need for consistent data on cyber incidents. at the system level, relevant data measures of digital interdependencies and the speed with which backup systems can be quickly enabled, are required. cyber security and digital financial inclusion 12. cyber risks can have

jerome h powell : welcoming remarks - teacher town hall meeting welcoming remarks ( hybrid ) by mr jerome h powell, chair of the board of governors of the federal reserve system, at a conversation with the chair : a teacher town hall meeting, washington dc, 28 september 2023. * * * thank you, sarah, thank you to those in fed education who helped put together this event, and thank you to the teachers here and online who have put aside some of their planning time to listen and, i hope, also participate. if i were doing the grading, credit would always be granted for participation. we have scheduled this discussion with teachers well into the school year, partly to highlight the beginning, on october 1, of economic education month. at the fed, every month is economic education month, and we are glad to join in the celebration. it is, fortunately, a very different time for teachers than the one we faced in august 2021, the last time we held this discussion with educators. in the crisis of the pandemic, teachers were on the front lines. i know how overwhelming this challenge was for many of you, and the extent of your sacrifice, for which i thank you. and the crisis in many ways continues, as research confirms the educational deficits that students still suffer from the pandemic. in addition to the challenges they face, there are likely to be consequences for the economy and for society, in a generation of young people who may lack some of what they need to be well - informed and engaged participants in our economy and our democracy. addressing this legacy of the pandemic is a major public policy challenge, so now more than ever, teachers are crucial to america's future. a large majority of you are economic educators, a role that is of particular importance. as many of you know, the fed's ability to influence the economy depends to some extent on influencing the public's view of current and future economic conditions. when my colleagues and i publish our projections for the most likely path for the economy and interest rates, as we did a couple of weeks ago, one of our goals is to influence spending and investment decisions today and in the months ahead. that will only be the case if people understand what we are saying and what it means for their own finances. that's where you come in. by educating students about economics, not only are you providing them with valuable skills to manage their finances, and to improve their chances for future success