payments that continue to be top of mind for policymakers. one of these is the push for real - time payments. since 2019, the fed has been working to launch fednow, a new faster payments system that will be available in the first half of 2023. fednow will help transform the way payments are made through new direct services that enable consumers and businesses to make payments conveniently, in real time, on any day, and with immediate availability of funds for receivers. fednow will enable depository institutions of every size, and in every community across america, to provide safe and efficient instant payment services. we have also been studying the concept of a central bank digital currency ( cbdc ). several foreign governments and central banks are exploring digital currency, and there are many competing proposals suggesting a need to create a digital currency. the common theme underlying the need in these proposals is the desire to increase the speed and reduce the cost of financial transactions. last january, the fed published a paper soliciting comment on possible forms and uses of a cbdc in the united states. the fed continues to study the idea, although much of what supporters hope to achieve with a central bank digital currency may be provided through fednow and existing private payment services. in any case, initiatives to make payments faster and more efficient will continue to be an area of focus. climate supervision climate has also been a recent focus for fed supervision, but our narrow interest in this area it is limited to the largest banks. last fall, the fed announced an exploratory pilot study with six of the gsibs that is narrowly focused on the goal of enhancing the ability of supervisors and firms to measure and manage climate - related financial risks, not credit allocation. the fed has also published a climate guidance proposal for banks over $ 100 billion in assets. these climate efforts do not apply to smaller and community banks. smaller and community banks already integrate and comply with robust risk management expectations. the fed views its role on climate as a narrow focus on 3 / 4 bis - central bankers'speeches supervisory responsibilities and limited to our role in promoting a safe, sound and stable financial system. while this climate supervision effort is a new area of focus, it has been a longstanding supervisory requirement that banks manage their risks related to extreme weather events and other natural disasters that could disrupt operations or impact business lines. community reinvestment act the last item on our regulatory agenda that i will note in my remarks today is the proposal to update

funds rate will continue to be guided by the incoming data and its implications for the outlook for inflation and economic activity. i will be looking for compelling signs that inflation has peaked and for more consistent indications that inflation is on a downward path, in determining both the appropriate size of future rate increases and the level at which the federal funds rate is sufficiently restrictive. i expect that once we achieve a sufficiently restrictive federal funds rate, it 1 / 4 bis - central bankers'speeches will need to remain at that level for some time in order to restore price stability, which will in turn help to create conditions that support a sustainably strong labor market. maintaining a steadfast commitment to restoring price stability is essential to support a sustainably strong labor market. to this point, unemployment has remained low as we have tightened monetary policy and made progress in lowering inflation. i take this as a hopeful sign that we can succeed in lowering inflation without a significant economic downturn. it is likely that as a part of this process, labor markets will soften somewhat before we bring inflation back to our 2 percent goal. while the effects of monetary policy tightening on the job market have generally been limited so far, slowing the economy will likely mean that job creation also slows. and if there are unforeseen shocks to the economy, growth may slow further. it's important to keep in mind that there are costs and risks to tightening policy to lower inflation, but i see the costs and risks of allowing inflation to persist as far greater. these dynamics make the difficult decisions facing the fomc even more challenging, but it is absolutely necessary that the committee achieves our goal of price stability. from the late 1960s through the mid - 1980s, the u. s. economy experienced high inflation, high unemployment, and declining living standards. during that time, policymakers prematurely eased monetary policy when the economy weakened, and inflation remained high. the fomc was forced to return to tightening monetary policy, causing a deep recession in 1981 and 1982. this is an important lesson that guides my thinking about monetary policy and my continued support for policy actions that will continue to lower inflation. it is also important to remember that today's inflation is a global concern. this is because some of the factors driving inflation in the united states are global, including the disruption to goods production and trade during the pandemic, the shutdown and reopening of large economies, and the more recent disruption of food and energy supplies due to