could even be room for the market to stomach this in its current condition. but in my opinion, this might be too radical a departure from the exit principles we announced and would risk undermining confidence in the fomc. this is my personal view. i realize it represents thinking “ outside the box ”. but in my final four months at the fed, i plan to urge my colleagues to think more outside the box in this and other ways in the interest of securing sound money, a sound economy and sound markets. and now to some texas brag. bis central bankers ’ speeches texas brag allow me to walk you through some charts and comment on each on them. thank you. and now in the great tradition of central bankers, i would be happy to avoid answering any questions you and your colleagues might have. bis central bankers ’ speeches

richard w fisher : monetary policy and an annual texas economic review remarks by mr richard w fisher, president and chief executive officer of the federal reserve bank of dallas, before the dallas business club, dallas, texas, 3 december 2014. * * * the charts can be found at the federal reserve bank of dallas ’ website the views expressed by the author do not necessarily reflect official positions of the federal reserve system. thank you, alden [ mccall ]. i feel right at home in a room full of mbas. as many of you know, i am not a phd economist like the majority of my colleagues sitting on the federal open market committee ( fomc ). i admire my colleagues tremendously for their intellectual capacity and their well - trained insights into the dismal science of economics and the arcana of monetary policy, but i am proud of just being an mba. i was privileged to attend all those schools alden mentioned : the naval academy, harvard and oxford. but i feel that the mba program at stanford business school prepared me best for my career as a banker, a money market operator, and for the past decade, a policymaker at the federal reserve. ( though plebe year at annapolis probably best equipped me for the sleep deprivation and the pressure we operated under during the financial crisis ). so alden, i begin with a tip of the hat to the mbas you have assembled this evening. i am going to talk about texas tonight, this being my annual report on the status of the texas economy. i will walk you through a series of slides that illustrate the strength of the texas economy, a series of economic records we have set this year, and to provide a balanced view, some of the growing pains that we are encountering. but first, i want to make a comment on monetary policy. thinking outside the box it strikes me as timely for the fed to consider implementing one of the possible options under the “ normalization principles ” the fomc articulated in september : allowing our security holdings to run off as the bonds in our massive portfolio mature. 1 before you jump out of your skin at this “ radical ” thought, let me ask you to consider the following. the 10 - year treasury note has rallied in price and declined in yield to 2. 29 percent. german 10 - year bunds, the equivalent market - anchoring european security, are trading to yield 0. 74 percent ; the japanese 10 - year yields 0. 42 percent. the