of new technologies to conduct traditional payment system operations in more efficient and effective ways will also drive change. both banks and end - users of the payment system are now discussing many issues and ideas. the committee has asked a group of staff to conduct further discussions with interested organizations and bring back to the committee a broader view of the current debate in this area. finally, the committee is continuing to encourage survey research on the use of different payment systems. the federal reserve's retail payment office is currently sponsoring several surveys to obtain more accurate data on both electronic and check payments being made in the united states. it is particularly important that we have a better idea of how many checks are being written in order for the banking industry and the public to understand better and plan for the evolution of the payment system. the technical work of “ cleaning the numbers ” collected in the surveys is continuing, and we hope to publish data from the survey later in the year. conclusion in conclusion, i would like to emphasize that our financial system is continuing to evolve, as it must in a dynamic and competitive market economy. financial consolidation at the national level has occurred relatively quickly, although much less so at the level of individual banking markets. the recent g - 10 study did not find fundamental problems with developments to date. it did, however, outline some practical steps the authorities can take to help better manage potential risk to the financial system and outlined a number of areas that should be monitored and analyzed further over the longer term. overall, the us payment system continues to evolve slowly, but there have been steady changes and a great deal of experimentation over the past few years. although we are not likely to see paper payment instruments disappear, electronic payment systems are being used more widely and creatively than in the past. on - line banking and other services are giving bank customers new and convenient mechanisms to initiate and receive electronic payments. however, simple ideas such as electronic bill payment by consumers and businesses have turned out to be more of a challenge than we imagined a few years ago. in addition, as the market continues to experiment with new systems, the old themes of reliability, security, privacy, and confidence need to be repeated often. speaking as a member of the payments system development committee, i would also like to emphasize the willingness of the committee members and the fed staff to discuss with private - sector organizations their new ideas, insights, and views about the future of the payment system. i have found that our discussions so far have all been very productive

for release on delivery 9 : 15 a. m. est january 6, 2025 an assessment of the economy and financial stability remarks by lisa d. cook member board of governors of the federal reserve system at the seventh conference on law and macroeconomics, university of michigan law school ann arbor, michigan january 6, 2025 thank you, dean logue. it is wonderful to be back in my adopted home state of michigan and on the university of michigan ’ s beautiful campus. the fact that you got this georgia native to visit in the first week of january shows you just how much i love it here. but, seriously, the program committee for the university of michigan law school ’ s seventh conference on law and macroeconomics has put together an impressive program. i am grateful for the opportunity to present my views and to learn from all of you. 1 today, i would like to speak about the federal reserve board ’ s work on financial stability. it is a topic that holds special importance to me, because i am the chair of the board of governors ’ committee on financial stability. but before speaking on financial stability, given that it is the beginning of a new year, i thought it would be helpful to share my economic outlook and my views on appropriate monetary policy. overall, the u. s. economy starts the year in good shape. economic growth was quite strong in 2024. inflation has fallen considerably from its peak two and a half years ago, though it remains somewhat above the fed ’ s 2 percent objective. the labor market is solid, with the unemployment rate still relatively low and americans, on average, bringing home paychecks that are growing faster than inflation. my focus, and that of my colleagues on the federal open market committee ( fomc ), is on our dual - mandate goals of price stability and maximum employment. this year, i will continue to work on calibrating monetary policy to ensure inflation returns sustainably to our 2 percent target while maintaining a solid labor market. i will also carefully monitor financial stability risks and vulnerabilities and work with my the views expressed here are my own and not necessarily those of my colleagues on the board of governors or the federal open market committee - 2colleagues at the fed and other agencies to reduce the likelihood that financial stability problems will disrupt the economy. economic activity as i stated, the economy grew at a strong pace recently. gross domestic product expanded at a 3. 1 percent annual rate in the third quarter