, and these facilities backstop the various channels in which credit flows to borrowers in the economy, including through loans from banks and nonbanks, through securities issued in capital markets, and through securitizations. usage to date across these facilities has not been particularly high. but as i have explained more fully elsewhere, their impact has been large and sustained, and i continue to attribute much of the 2 / 4 bis central bankers'speeches facilities'initial success to the size, scope, and flexibility of these backstops. 3 we've seen encouraging progress from these policy actions in recent months. as chair powell has noted, though, full recovery will take some time. 4 moreover, the timing for fully achieving our goals will depend on more than just our monetary and financial policies. most important will be our public health authorities'success in containing the virus itself. and fiscal measures, which helped many smaller firms, the unemployed, and lower income households weather the initial stresses of the crisis, will continue to play a critical role in promoting sustained recovery. the fed's policy response : how we implement also matters i'd like to shift away from the fed's policy actions and explain why their implementation can also make a difference in addressing the unequal impact of the pandemic. recall that as we launched the facilities, the principles of transparency, governance, and accountability were at the forefront of our execution strategy. why? the fed, together with treasury, has been entrusted to deploy large sums of public resources, and transparency is fundamental to our credibility. in practice, this requires clarity in the terms and conditions of the facilities, timely reporting on facility usage, and publication of vendor contracts, just to list a few aspects. relatedly, we have an obligation to the public to be accountable for all our actions. to maintain the integrity of our actions, this involves strong governance, risk management, and independent oversight, all of which have been implemented for the facilities. now that the facilities are operational, our focus is on extending access to the facilities. access can take two forms : access for borrowers, and access for service providers. access in the first sense is important to broaden the reach of the facilities, thereby supporting the flow of credit and strengthening backstop support for the economy. the municipal liquidity facility, for example, broadened the program's eligibility so that smaller cities and counties could qualify to participate, expanding the potential issuers from around 75 in the program '

for release on delivery 1 : 15 p. m. est ( 12 : 15 p. m. cst ) january 19, 2023 staying the course to bring inflation down remarks by lael brainard vice chair board of governors of the federal reserve system at the university of chicago booth school of business chicago, illinois january 19, 2023 inflation has declined in recent months, which is important for american households, businesses, and consumers. inflation is high, and it will take time and resolve to get it back down to 2 percent. we are determined to stay the course. 1 financial conditions have tightened considerably over the last year as the federal reserve and foreign central banks have tightened policy. real yields have risen significantly across the curve over the past year : 2 - year yields on treasury inflationprotected securities ( tips ) have risen more than 4 - 1 / 2 percentage points to 2. 1 percent, and 10 - year tips yields have risen more than 2 - 1 / 4 percentage points to 1. 2 percent. short - term real interest rates have moved into decidedly positive territory. 2 mortgage rates have doubled. 3 inflation has been declining over the past several months against a backdrop of moderate growth. yesterday ’ s industrial production index points to a significant weakening in the manufacturing sector, and the retail sales report points to a further moderation in consumer spending. looking forward, weaker readings on real income, wealth, and sentiment, along with indicators of spending on services, such as the ism services index, point to subdued growth in 2023. 4 real disposable personal income declined, on net, at an annual rate of 4. 1 percent in the first three quarters of 2022, i am grateful to kurt lewis for his assistance on these remarks. these views are my own and do not necessarily reflect those of the federal reserve board or the federal open market committee. for instance, the expected 3 - month t - bill rate is currently 4. 7 percent, 1. 5 percentage points above the 3 - month 3. 2 percent median projection of the 2023 : q1 annualized total pce ( personal consumption expenditures ) inflation rate in the january blue chip survey. in addition, over the course of the past year, investment - and speculative - grade corporate bond spreads over treasury securities have widened by roughly 50 basis points and 100 basis points, respectively ; broad equity prices have declined by 17 percent ; and the trade - weighted dollar has appreciated by about 4 percent on net. the federal