financial pressures. about 4 percent of debt balances currently are 90 + days past due in albany, which is twice the 2 percent delinquency rate in 2005. although this is less than half of the rate in new york state or the nation, this doubling of delinquencies in the albany area still troubles me as a sign of heightened distress for many families here. stepping back from the current challenges, the capital region possesses a number of fundamental strengths. these strengths show through in some key ways : albany is growing. the recent census shows that the population in the region expanded by 5. 5 percent over the past decade, more than double the statewide average. saratoga county saw an especially strong gain of nearly 10 percent. incomes in the region are high. albany is the state ’ s most affluent area outside the new york city metropolitan region. median household income was roughly $ 57, 000 in 2009, moderately above the statewide median and well above the nation ’ s. not surprisingly, then, the poverty rate is lower than the u. s. average – 11 percent versus 14 percent nationally. your residents are highly educated. educational attainment – a critically important driver of economic activity – is also well above the national average. a third of adults who live in the albany area hold college degrees. one of albany ’ s key strengths is its higher education industry. the colleges and universities in the capital region help stabilize the local economy during downturns and recoveries. indeed, the private education sector continually added jobs before, during, and after the quarterly report on household debt and credit, august 2011. bis central bankers ’ speeches great recession, both nationally and locally. for example, the university at albany has taken a lead role in shaping the next generation of financial professionals and regulators through its pioneering curriculums. from my perspective at the fed, a particularly important and timely example is the university ’ s innovative national science foundation - supported program for instruction and research in financial market regulation. research conducted by the new york fed has shown that colleges and universities can help build the skills and education of their region ’ s workforce, which is critical to an area ’ s ultimate economic success. 4 they do this in two ways. most directly, colleges and universities support an educated workforce by producing new college graduates, some of whom will stay and work in the area. the university at albany clearly plays this role in the capital area. perhaps equally important in terms of promoting local economic growth, colleges and universities can play a

william c dudley : the national and regional economic outlook remarks by mr william c dudley, president and chief executive officer of the federal reserve bank of new york, at the university at albany, albany, new york, 18 november 2011. * * * good morning. i am pleased to be at the university at albany. it is always a pleasure to speak with students and faculty because of the intellectual leadership role you play in your communities. i also welcome the addition of business leaders to this gathering because you shape the economic landscape in the region. so, i thank you all for coming today and helping make this such a rich audience. over the past 20 months, i have been engaged in a series of outreach meetings all across my federal reserve district. i consider these visits just as important as my trips to washington, d. c., to help formulate monetary policy or to switzerland to shape international bank regulation. the understanding of issues and concerns that i gain today will help ensure that my policy decisions reflect the public interest in the broadest sense. each visit within the region helps me deepen relationships with the people i represent. as you may know, the new york fed ’ s district includes all of new york state ; 12 counties in northern new jersey ; fairfield county, connecticut ; puerto rico ; and the u. s. virgin islands. in august, i met with community leaders, businesses and elected officials in newark, patterson and jersey city. earlier this year i went to brooklyn, the bronx, queens and puerto rico, while last year i visited several upstate cities. my trip started yesterday with a policy speech to the west point cadets and was followed by a colloquium with their economics faculty. so, this visit to the upper hudson valley brings me in contact with some of our country ’ s future leaders – you and the cadets who will lead our country in very important, if different, ways. i will also have a chance to see more of what makes albany so distinct from both downstate and upstate new york. of course, i may have a leg up on this because i was born and raised close by, in western massachusetts! the greater albany area is home to 900, 000 people – roughly the size of three average cities in the united states. you and your fellow residents tend to be highly educated and be employed as public servants. these factors are all part of what makes albany feel special. today, i want to talk with you first about the fed – what we do and why