and families, especially the most vulnerable. i am committed to pursuing the federal reserve ’ s congressionally mandated goals of price stability and maximum employment and to maintaining the strength and resilience of our financial system. i am committed to the independent and nonpartisan status of the federal reserve. if confirmed, i look forward to supporting chair powell in carrying out the responsibilities assigned to the federal reserve and in fostering transparent communication and accountability to you and the american people. i will bring a considered and independent voice to our deliberations, drawing on insights from working people, businesses, financial institutions, and communities — large and small — across the country. i will support policies that are in the interests of the american people and based on the law and careful analysis of the evidence. before closing, i want to thank my husband and daughters for their steadfast support of my work. and i would like to commend the outstanding efforts of the individuals across the federal reserve system who work so hard every day to serve the american public. 1 / 2 bis central bankers'speeches senators, i thank you for this opportunity to appear before you and for considering my nomination. i would be pleased to respond to any questions. 2 / 2 bis central bankers'speeches

stanley fischer : israel ’ s economy and the challenges facing its banking system address by professor stanley fischer, governor of the bank of israel, at the agm of the association of banks in israel, tel aviv, 23 november 2006. * * * mr president of the association of banks in israel and chairman of bank leumi, eitan raff ; executive director, association of banks in israel, freddy wieder ; my banker colleagues and colleagues from the bank of israel ; ladies and gentlemen : may i start by thanking the association of banks in israel for inviting me and giving me the opportunity to speak before you today. i would like to relate first to the current state of israel ’ s economy, in which the banking system plays an important role, both as an active, influential participant and as an entity affected by economic developments. i will then address the challenges facing the new supervisor of banks and israel ’ s banking system. the economic situation israel ’ s economy today is doing very well, even after the war in the north. although activity slowed during the war - reflected by a negative rate of growth in the third quarter - the latest indicators point to a relatively rapid recovery of economic activity after the war. the economy has enjoyed three years of rapid growth. in the light of the national accounts data of the third quarter published recently by the central bureau of statistics, the bank of israel assesses that gdp will grow by 4. 8 percent in 2006. this is a high rate of growth by international standards, and reflects a rise in investment and in exports, a surplus in the balance of payments, a very high rate of foreign investment, increased productivity and an improvement in employment - and all this despite the war ’ s adverse impact on growth. budget data show that tax revenues have revived. the government ’ s budget deficit in 2006 is expected to be about 1. 8 percent of gdp. inflation in israel is low, and in 2006 is expected to be below the target, mainly due to the fall in oil prices and the appreciation of the shekel. in accordance with the bank of israel ’ s flexible inflation targeting approach, our intention is to bring inflation back gradually to within the target range of 1 – 3 percent a year. ten - year interest rates in israel are below 6 percent a year, and this is important to everyone who has to take a mortgage. the markets are robust and stable. three main factors account for the economy ’ s success and its ability to withstand the negative impact of the war