restraint to be realized, especially on inflation. the economy is also facing headwinds from tighter credit conditions for households and businesses, which are likely to weigh on economic activity, hiring, and inflation. tighter credit conditions are a natural result of tighter monetary policy. but the bank stresses that emerged in march may well lead to a further tightening in credit conditions. the extent of these effects remains uncertain. at our last meeting, the federal open market committee ( fomc ) decided to maintain the target range for the federal funds rate at 5 to 5 - 1 / 4 percent while continuing the 1 / 4 bis - central bankers'speeches process of significantly reducing our securities holdings. we made this decision in light of the distance we have come in tightening policy, the uncertain lags in monetary policy, and the potential headwinds from credit tightening. as noted in the fomc's summary of economic projections, a strong majority of committee participants expect that it will be appropriate to raise interest rates two or more times by the end of the year. 1 when bank stress emerged in march, we acted in concert with other government agencies to address it, enabling the federal deposit insurance corporation to resolve two failed banks in a manner that protected all depositors. we also used our liquidity tools to make funding available to banks that might need it. in addition to our discount window, we established a new facility under our emergency lending authorities, the bank term funding program. our provision of liquidity through these tools supported the stability of the financial system without restricting the use of our monetary policy tools to firm the stance of policy as part of our efforts to reduce inflation. the banking system remains sound and resilient, deposit flows have stabilized, and strains have eased. evolution of the system since the great recession a little more than a decade ago, the global financial crisis required extraordinary interventions by governments around the world. stabilizing the u. s. financial system required coordinated efforts by all parts of the government, including $ 700 billion in taxpayer funds to recapitalize banks, a suite of fed emergency liquidity facilities, as well as government guarantees on bank transaction accounts and money market mutual funds. despite these efforts, the great recession brought misery to countless millions. as the crisis slowly receded, authorities in the u. s. and around the world implemented a host of reforms. the goal was to build a system that could withstand severe shocks, including unanticipated ones that might arrive from any direction

alan greenspan : financial education remarks by mr alan greenspan, chairman of the board of governors of the us federal reserve system, at the 33rd annual legislative conference of the congressional black caucus, washington, dc, 26 september 2003. * * * i am pleased to be here today to discuss the importance of financial education for consumers. forty years ago, dr. martin luther king, jr., challenged this nation to fulfill its promise of freedom and equality for all citizens, to ensure that all americans are able to participate in day - by - day business without being hampered by debilitating discrimination. in those forty years we have witnessed a great deal of change. however, the momentous goal of ensuring that everyone has access to the benefits of our free and efficient market economy has yet to be achieved and remains as relevant today as it was in august of 1963, when marchers gathered around the lincoln memorial. increasing economic prospects for people in traditionally underserved neighborhoods and granting every individual the opportunity to succeed remains crucial to our national well - being. a strong and effective system of education is one fundamental way to strengthen our economy and raise living standards. and education about personal finance that helps consumers of all ages meet the challenges and demands of our increasingly knowledge - based economy is one important component of such a system. trends in consumer finances today's financial world is highly complex when compared with that of a generation ago. forty years ago, a simple understanding of how to maintain a checking and savings account at local banks and savings institutions may have been sufficient. now, consumers must be able to differentiate between a wide range of financial products and services, and providers of those products and services. previous, less - indebted generations may not have needed a comprehensive understanding of such aspects of credit as the impact of compounding interest and the implications of mismanaging credit accounts. today, however, the advance of telecommunications technologies and the development of other new technological tools have broadened the availability of credit and other banking services. more generally, these advances mean consumers must be familiar with the role that computers play in the conduct of every traditional financial transaction, from withdrawing funds to borrowing. data, both empirical and anecdotal, point to trends in consumer financial conditions that have caused concern among some consumer groups. household debt has risen appreciably in recent years. while analyses suggest that, overall, the level of debt is being serviced adequately, a record number of nonbusiness bankruptcy filings reveals that many consumers