public ’ s long - term inflation expectations. how has the economic picture changed in the month since that meeting? as is often the case, the incoming economic data have been mixed. in the market for residential real estate, indicators of construction and home sales have continued to be weak. in contrast, the labor market remained solid in october, with some 130, 000 new jobs added to private - sector payrolls and the unemployment rate remaining at 4. 7 percent. claims for unemployment insurance have drifted up a bit in recent weeks, although, on average, they have remained at a level consistent with moderate expansion in employment. we will, of course, have the labor market report for november next week, and in the coming days we will continue to draw on anecdotal reports, surveys, and other sources of information about employment and wages. continued good performance by the labor market is important for maintaining the economic expansion, as growth in earnings helps to underpin household spending. with respect to household spending, the data received over the past month have been on the soft side. the committee will have considerable additional information on consumer purchases and sentiment to digest before its next meeting. i expect household income and spending to continue to grow, but the combination of higher gas prices, the weak housing market, tighter credit conditions, and declines in stock prices seem likely to create some headwinds for the consumer in the months ahead. core inflation – that is, inflation excluding the relatively more volatile prices of food and energy – has remained moderate. however, the price of crude oil has continued its rise over the past month, a rise that will be reflected in gasoline and heating oil prices and, of course, in the overall inflation rate in the near term. moreover, increases in food prices and in the prices of some imported goods have the potential to put additional pressures on inflation and inflation expectations. the effectiveness of monetary policy depends critically on maintaining the public ’ s confidence that inflation will be well controlled. we are accordingly monitoring inflation developments closely. the incoming data on economic activity and prices will help to shape the committee ’ s outlook for the economy ; however, the outlook has also been importantly affected over the past month by renewed turbulence in financial markets, which has partially reversed the improvement that occurred in september and october. investors have focused on continued credit losses and write - downs across a number of financial institutions, prompted in many cases by credit - rating agencies ’ downgrades of securities backed by residential mortgages. the fresh wave of

analyze and understand today's financial innovations and evaluate their implications for welfare and policy. this year's workshop continues in that innovative spirit, keeping an eye on the future of money and banking. the papers to be presented span areas including decentralized ledgers, exchanges for crypto assets, and the impact of certain protocols on financial stability. researching these new technologies helps us deepen our understanding of the implications for the broader financial system. an important point to remember this week is that no single field of study can give the answers to all of the big questions we face relating to the evolution of money and banking. commingling of insights and techniques from monetary theory, finance theory, and other fields is vital in studying the complex interactions of modern financial systems. of course, it is also important to test our theories with available data, and many papers we will see this week deliver on that count as well. without further ado, let's get started. i hope you have a great week of engaging discussions, and i'm sure we will learn a lot from this year's workshop. 2 / 3 bis - central bankers'speeches 1 the views expressed here are my own and are not necessarily those of my colleagues on the federal reserve board or the federal open market committee. 3 / 3 bis - central bankers'speeches