execute its statutory mandate, catering to the economic and financial environment and the institutions of the time in order to provide france's regions with the best possible support. in the first part of my talk, i will detail how the banque de france, in acting as an institution with a strong regional presence, has tailored its services over time to fulfil its three main policy objectives, which are to guarantee monetary stability, preserve financial stability and provide services to the economy. in part two, i will turn to today ’ s economic and monetary situation and show with our current measures taken to preserve monetary stability, how the fulfilment of each objective is never a given but the result from the committed action by the central bank. * * * * today, just as it has always done, the banque de france offers two main types of nationwide services : first, it guarantees monetary and financial stability, because no economy can work without a stable currency and a stable banking and financial system ; second, it supports local economies through its regional presence, serving households and companies, especially the most vulnerable, and supporting the environmental and digital transitions. let me describe each of these aspects, explaining in each case how the bank of france has adapted over the years to meet the needs of the day. the first broad set of services provided to the regions are focused on delivering monetary and financial stability. this means conducting a monetary policy that guarantees price stability in the medium term, but also supervising the payment system and ensuring the stability of financial intermediaries. maintaining a stable currency safeguards purchasing power over time and ensures the currency ’ s continuity across the territory, so that every individual can spend that currency anywhere and at any time and enjoy the same ability to purchase necessary goods and services. back in the 18th century, france's authorities found themselves unable to guarantee this stability. after the bankruptcy of the john law note - issuing bank in 1720 and several other failed attempts to set up a central bank, 5 the hyperinflation fuelled by monetary financing of the revolutionary wars and the ensuing default on two - thirds of france ’ s public debt in 1797 had destroyed confidence in the currency. 6 the most pressing task facing the consulate government was to rebuild the foundations of that trust, which it did by authorising the establishment of the banque de france in 1800 and anchoring the value of the franc through the creation of the germinal franc in 1803. in establishing the banque de france, france set

for release on delivery 11 : 00 a. m. est january 8, 2021 u. s. economic outlook and monetary policy remarks by richard h. clarida vice chair board of governors of the federal reserve system at the c. peter mccolough series on international economics council on foreign relations new york, new york ( via webcast ) january 8, 2021 it is my pleasure to meet virtually with you today at the council on foreign relations. 1 i regret that we are not doing this session in person, as we did last year, and i hope the next time i am back, we will be gathering together in new york city again. i look forward to my conversation with steve liesman and to your questions, but first, please allow me to offer a few remarks on the economic outlook, federal reserve monetary policy, and our new monetary policy framework. current economic situation and outlook in the second quarter of last year, the covid - 19 ( coronavirus disease 2019 ) pandemic and the mitigation efforts put in place to contain it delivered the most severe blow to the u. s. economy since the great depression. economic activity rebounded robustly in the third quarter and has continued to recover in the fourth quarter from its depressed second - quarter level, though the pace of improvement has moderated. household spending on goods, especially durable goods, has been strong and has moved above its pre - pandemic level, supported in part by federal stimulus payments and expanded unemployment benefits. in contrast, spending on services remains well below pre - pandemic levels, particularly in sectors that typically require people to gather closely, including travel and hospitality. in the labor market, more than half of the 22 million jobs that were lost in march and april have been regained, as many people were able to return to work. inflation, following large declines in the spring of 2020, picked up over the summer but has leveled out more recently ; for those sectors that have been most adversely affected by the pandemic, price increases remain subdued. the views expressed are my own and not necessarily those of other federal reserve board members or federal open market committee participants. i would like to thank chiara scotti for her assistance in preparing these remarks. - 2while gross domestic product growth in the fourth quarter downshifted from the once - in - a - century 33 percent annualized rate of growth reported in the third quarter, it is clear that since the spring of 2020, the economy has