. our research is conducted in accordance with data principles recognizing the important responsibilities associated with collecting and analyzing indigenous data to ensure that indigenous data sovereignty and governance are respected. the third, and perhaps most important, is empowerment. our research and programs enable our reserve banks to assist indigenous communities through information and resources to plan their own economic futures. for example, our native economic and financial education empowerment program works with indigenous communities to provide free economic and personal finance education that incorporates indigenous language and culture. our working communities challenge facilitates local collaboration to increase economic opportunity in rural areas. this program serves as a first - of - its - kind venue to connect tribal leaders, nonprofit organizations, and private - and public - sector leaders around economic development efforts. most recently, leaders convened to understand data gaps across the full partnership and how they can better leverage data across organizations as they work toward expanding the number of living - wage jobs and reducing rates of childhood poverty within the community. indigenous voices and perspectives are a critical part of this effort. we're also developing new data tools and research partnerships that help indigenous communities conduct research on economic opportunities. for example, our native american funding and finance atlas is a publicly available interactive map tool that identifies the financial institutions, lending activity, and economic development programs in their tribal community and surrounding areas. i'm proud of the federal reserve system's efforts to further indigenous financial inclusion, and i'm grateful for this opportunity to learn from the dedicated efforts of our network partners. there is so much important and impactful work happening, and i look forward to the progress that we will continue to make together. thank you. 1 the views here expressed are my own and not necessarily those of my colleagues on the board of governors of the federal reserve system or at the reserve banks. return to text 4 / 4 bis - central bankers'speeches

. 3. policy rules to inform discretionary monetary policy a third contribution of models to the monetary policy process is through simulations with alternative rules for federal reserve action. at lhm & a we designed our model to offer users four policy regimes : setting paths for the money supply, nonborrowed reserves or the federal funds rate or turning on a reaction function according to which the federal funds rate responds to developments in output, unemployment and inflation. while we increasingly used the reaction function in our analysis of alternative fiscal policies, we did not routinely take advantage of the reaction function to forecast monetary policy. another irony is that there is a much more active interest in the implications of monetary policy rules at the board, where discretionary policy is made, than in the private sector, where estimated rules might be effectively used to forecast monetary policy. the staff has examined a number of alternative rules, including those based on monetary aggregates, commodity prices, exchange rates, nominal income, and, most recently, taylor - type rules. these rules, in effect, adjust the real federal funds rate relative to some long - run equilibrium level in response to the gaps between actual and potential output and between inflation and some long - run inflation target. such a rule can be interpreted as either a descriptive or normative guide to policy. if the parameters of the policy rule are estimated over some recent sample period, the rule may describe the average response of the fomc over the period. alternatively, parameters can be derived from some optimizing framework, dependent on a specific objective function and model of the economy. stochastic simulations with such a rule can provide some confidence that following the rule will contribute to both short - run stabilization and long - term inflation goals in response to historical shocks to the economy and the rule, in turn, can provide discipline to discretionary policy by providing guidance on when and how aggressively to move interest rates in response to movements in output and inflation. the focus on rules is much more important under an interest rate operating procedure than under an operating procedure focused directly on monetary aggregate targets and is also more important under an interest rate operating procedure when the monetary aggregates, as has been the case for some time, do not bear a stable relationship to overall economic performance and therefore do not provide useful information about when and how aggressively to change interest rates. taylor - type rules, in this environment, provide a disciplined approach to varying interest rates in response to economic developments that both ensures a pro - cyclical response of interest