were to abandon our service to our respective nations and form a company, we would use our good names to borrow as much money as we could at current rates. the fed ’ s policy objectives, as stated in section 2a of the federal reserve act, are that “ the board of governors of the federal reserve system and the federal open market committee shall maintain long run growth of the monetary and credit aggregates commensurate with the economy ’ s long run potential to increase production, so as to promote effectively the goals of maximum employment, stable prices, and moderate long - term interest rates. ” see www. federalreserve. gov / aboutthefed / section2a. htm. see “ the fed ’ s evenhanded policy ”, by randall w. forsyth, barron ’ s, aug. 23, 2014. for the latest reading of the dallas fed ’ s alternative measure of trimmed mean pce inflation, see www. dallasfed. org / research / pce / index. cfm. bis central bankers ’ speeches and this, indeed, is happening. u. s. companies have used this bond market and borrowing rate hiatus from normalcy to pile up cheap, nearly cost - free balances. this cheap and abundant monetary fuel, with the proper incentives from the fiscal and regulatory authorities, can be deployed to the benefit of company stakeholders ( shareholders and employees ) to enrich and grow the economy. in this sense, we are unique in the world. mr. ambassador, american businesses are rich and muscular. and those muscles are being flexed. for example, just two days ago, the institute for supply management ( ism ) released its purchasing managers index. the data surprised most all forecasters to the upside. activity was broad based : 17 of 18 industries surveyed reported growth in august, and new orders reached a 10 - year high. today, the ism released its nonmanufacturing index, which registered the highest level in nine years. these reports echo a string of others – including the beige book survey of regional economic conditions released yesterday by the federal reserve – that underscore the healing that is taking place in the u. s. economy despite our having what is, in truth, a dysfunctional and counterproductive fiscal and regulatory environment. all we need now is for the fiscal and regulatory authorities – congress and the executive branch – to unleash the animal spirit of business that is well nourished with the feed of cash and ready

the lone star state in 2013 : bis central bankers ’ speeches in terms of number of jobs created, the leading sectors in texas last year were trade, transportation and utilities ( accounting for 73, 700 ), professional and business services ( 44, 600 ), leisure and hospitality ( 42, 300 ), educational and health services ( 33, 500 ), construction ( 26, 800 ), government ( 19, 700 ) and financial activities ( 18, 100 ). this year through july, texas employment has already increased by 238, 200 jobs, a 3. 6 percent annualized growth pace. over the 12 months ending this july, texas added just shy of 400, 000 jobs – more jobs than any other state. clearly, texas employment is growing at an impressive clip. another misperception is that all of these jobs created in texas are low - paying jobs. wrong. we have been creating jobs in every income quartile, unlike the rest of the country. this graph, recently updated, covers the 13 - year period from 2000 to 2013. it charts job creation by wage quartile in texas and in the nation ex - texas. as you can see, texas has had healthy growth in every income quartile, while, without texas, the united states has actually seen job destruction, on net, in the two middle - income quartiles. ( this fact deeply concerns me because middle - income groups are the backbone of america. ) bis central bankers ’ speeches u. s. economy is on the mend the reality, mr. ambassador, is that texas is part of the united states and, all told, our economy is on the mend from the frightful shock of the financial and economic implosion of 2007 – 09. this is the dashboard that we at the dallas fed use to track our national economy : bis central bankers ’ speeches the federal reserve is mandated by the laws of the united states to manage monetary policy to achieve full employment while maintaining price stability and “ moderate interest rates ” over time. 1 a “ hindu goddess ” as you can see from this graphic, unemployment has declined to 6. 2 percent, and the dynamics of the labor market are improving. at the federal open market committee, where we set monetary policy for the nation, we have been working to better understand these employment dynamics. this is no easy task. bill gross, one of our country ’ s preeminent bond managers, made a rather pungent comment about our efforts.