william c dudley : brief remarks about the centennial “ the fed at 100 ” exhibit introductory remarks by mr william c dudley, president and chief executive officer of the federal reserve bank of new york, at the museum of american finance, new york city, 25 september 2013. * * * thank you all for being here to commemorate the opening of the centennial exhibit for the federal reserve system and the federal reserve bank of new york at the museum of american finance, just a few blocks from the new york fed ’ s landmark head office at 33 liberty street. i would like to say thank you to our friends at the museum for their work and interest in the fed and for supporting us in organizing this event. before making some brief remarks about the centennial, i would also like to acknowledge some of the people in attendance tonight. we have two former new york fed presidents here this evening : jerry corrigan and bill mcdonough. i met jerry, the seventh president of the bank, when i was still wet behind the ears. i was just out of graduate school at the board of governors in washington, but jerry was already a force to be reckoned with and a part of paul volcker ’ s inner circle. jerry ’ s tenure as president had many memorable moments, including the october 1987 stock market “ break ”. jerry, of course, was instrumental in working with then chairman alan greenspan in devising a response to provide liquidity to the market, and an episode that could have ended in financial crisis soon passed. jerry also tackled many other difficult issues during his tenure, including the latin - american debt crisis and the development of the first basel accord. we also have bill mcdonough, the eighth president of the bank, who built on the accomplishments of jerry ’ s tenure, and made great strides in connecting the new york fed to the broader region. at the same time, he helped ensure that the federal reserve was prepared to face new, salient challenges presented by developments in the global economic and financial landscape. during his tenure, the city, the country and the bank experienced a very significant crisis on september 11, 2001. under bill ’ s leadership, new york fed staff worked tirelessly on liberty street, supporting the efforts of first responders, while ensuring that financial markets continued to operate and serve their vital function in the u. s. and global economy. a number of the members of our board of directors, including chairwoman rafferty, are with us, as is one of

these developments caused considerable fluctuations especially in energy - exporting emerging countries. overall, the risk premia of emerging economies followed a volatile course due to the monetary policy uncertainties, the slowdown in economic activity and the course of oil prices ( chart 2 ). effects of this volatility in global markets emerged in the turkish economy as fluctuations of risk premium indicators and exchange rates. the fall in commodity prices, chiefly in oil, is expected to improve the economy especially in terms of inflation and external balance. additionally, the tight monetary policy stance stands out as a factor that limits the negative effects of global volatilities on turkey in this period. annual growth recorded some deceleration following the first quarter of 2014. this was mainly led by receding agricultural output amid unfavorable climatic conditions as well as the slowdown of export growth resulting from geopolitical risks. indicators regarding the last quarter show that annual growth remained moderate due to weak foreign demand. in 2015, we expect the growth rate to increase gradually with the increased contribution of domestic demand. bis central bankers ’ speeches the positive effects of the tight monetary policy stance and macroprudential measures continued in the last quarter of 2014 leading the core inflation trends to approach the target. moreover, plummeting oil prices supported the disinflation process and inflation expectations have recently seen a noticeable improvement. due to the fading cumulative effects of the exchange rate, the reverting of food inflation to past years ’ averages as well as the falling oil prices, we project a notable decline in inflation in 2015. accordingly, inflation is estimated to approach the levels consistent with the target in mid - 2015. 1. monetary policy and financial conditions the central bank of the republic of turkey ( the cbrt ) maintained its tight stance in the last quarter of 2014 and in consideration of global volatilities, supported the tight monetary policy with a tight liquidity policy. as you can see on the slide, the bist overnight repo rates have remained close to the upper bound of the interest rate corridor since october in line with the liquidity policy ( chart 3 ). the cbrt funding has been made mainly through one - week repo auctions since early 2014 ( chart 4 ). thus, the cbrt average funding rate hovered around the 1 - week repo rate in this period. as we all know, core inflation trends are following a downward trend. considering the fall in oil prices and improved expectations that result in favorable developments in the