inflation of non - energy services excluding housing, which is still quite elevated, averaging 3 - 3 / 4 percent over the most recent six months. tightening monetary policy taking into account the different speeds the gears are moving, it is clear that overall demand remains well in excess of supply, and inflation is running far above our 2 percent target. when it comes to monetary policy, we must restore balance to the economy and bring inflation down to 2 percent on a sustained basis. earlier this month, the fomc raised the target range for the federal funds rate to 4 - 1 / 2 to 4 - 3 / 4 percent, the eighth consecutive increase. the fomc said it anticipates " ongoing increases in the target range will be appropriate in order to attain a stance of monetary policy that is sufficiently restrictive to return inflation to 2 percent over time. in determining the extent of future increases in the target range, the committee will take into account the cumulative tightening of monetary policy, the lags with which monetary policy affects economic activity and inflation, and economic and financial developments. " 3 the committee also said it will continue to reduce its holdings of treasury securities and agency debt and agency mortgage - backed securities, according to the framework it announced last may. 4 3 / 5 bis - central bankers'speeches one aspect of inflation that's important for achieving and sustaining price stability is the anchoring of inflation expectations. since 2012, the fomc has clearly and consistently communicated its resolute commitment to its 2 percent longer - run inflation goal and the importance of well - anchored inflation expectations consistent with that goal. 5 this provides a " north star " for our policy decisions and has helped keep longer - term inflation expectations well anchored. 6 according to our most recent survey of consumer expectations, three - year - ahead inflation expectations are now where they were before the sharp increase in inflation that started in 2021, and one - year - ahead expectations have been trending down since the middle of last year. 7 economic outlook declines in commodity and goods prices will not be enough to bring inflation to 2 percent on a sustained basis. we need all the gears turning at the right pace to restore balance between demand and supply in the entire economy. we still have some way to go to achieve that goal. and it will likely entail a period of subdued growth and some softening of labor market conditions. as a result, i expect real gdp growth to come in around 1 percent for 2023. and i antici

have a negative impact on americans ’ pension and 401 ( k ) holdings. this tightening of financial conditions would damage the u. s. recovery and result in slower output growth and less job creation. at a time that u. s. unemployment is very high, this is a particularly unacceptable outcome. in the extreme, u. s. financial markets could become so impaired that this would dry up the flow of credit to households and businesses. iii. u. s. dollar swaps in terms of what actions the official sector in the united states has taken or could take with regard to europe, i wish to emphasize that any and all such actions pursued by the federal reserve are motivated by the mandates congress has given to the federal reserve to promote price stability and maximum sustainable employment here in the united states. when the federal reserve system was created by congress in 1913, it was given the responsibility of providing liquidity to the financial system in times of stress in order to shield the economy, to the extent possible, from the severe effects of financial instability on economic activity and jobs. while the economy and the markets have evolved substantially in the century since then, this basic principle continues to guide our efforts today. central banks around the world have an important lender of last resort role. this role is important in order to protect the economy against financial instability. in today ’ s globally integrated economy, banks headquartered outside of the u. s. play an important role in providing credit and other financial services in the u. s. – providing a total of about $ 900 billion in overall financing within the u. s. for these banks to provide u. s. dollar loans, they have to maintain access to u. s. dollar funding. at a time when it is already hard enough for american families and firms to get the credit they need, we have a strong interest in making sure that these banks can continue to be active in the u. s. dollar markets. banks headquartered outside the u. s., like banks that are headquartered here, make extensive use of dollars in their financing activities. in part, this is due to the fact that the u. s. dollar is the world ’ s number one currency – a status that brings with it many benefits for our country. it is in the u. s. national interest to make sure that non - u. s. banks that are judged to be sound by their central bank are able to access the u. s. dollar funding they need in order to