transition. but it ’ s also clear that a significant speed bump in transition is uncertainty about how the switch to new rates will be treated under the huge range of existing regulations that weren ’ t written with this kind of event in mind. the official sector must pave the way for transition by eliminating that uncertainty. paving over the speed bumps, if you will. since my last speech about libor, the official sector has worked closely with the arrc and others to provide clear guidance and offer the prospect of relief from existing rules. there is a final rule on swap margins for legacy swaps that transition away from libor, 16 a proposed cfpb rule on transitioning consumer credit, 17 accounting guidance from the fasb and the sec, 18 tax guidance from the irs, 19 and relief from the cftc. 20 the federal housing finance administration has taken a number of actions, including prohibiting the federal home loan banks from entering into libor transactions or investments. 21 fannie mae and freddie mac will stop accepting libor - based arms by the end of this year22 and have created new arm products indexed to the 30 - day sofr average. 23 the supervisory agencies have also eliminated uncertainty about what stance they will be taking on libor transition in their supervisory and examination work — they ’ ve said very clearly they ’ ll be focusing on it, and every supervised firm needs to focus on it too. on the international level, the fsb and the basel committee have urged the authorities in each jurisdiction to identify the remaining transition issues and increase the intensity of their supervisory actions when the preparations of individual banks are unsatisfactory. 24 the basel committee has also put out faqs on benchmark reform under the basel framework. 25 in the united states, the federal financial institutions examination council ( ffiec ) has emphasized the financial, legal, operational, and consumer protection risks of the upcoming transition and announced that the supervisory focus on evaluating institutions ’ preparedness will increase in the rest of 2020 and 2021. 26 and the sec has identified registrant preparedness for the transition away from libor as an examination program priority for the coming fiscal year. 27 so be prepared to answer questions about how you ’ re planning for the end of libor across your business. conclusion given how deeply embedded libor is in products and systems across the commercial landscape, the transition away from libor is a huge undertaking that presents a whole array of risks. there remain a host of uncertainties about the end of

every day. our outreach and community development team is actively engaged with people and leaders around the second district through regional visits, advisory councils, and frequent events. and our researchers study economic conditions and trends in the region and make their findings widely available. this is a pivotal time for our city. we are excited to be back here, and we will continue this important work in forums similar to this one. i hope you'll partner and engage with us, because our collective efforts will make a difference. let's take advantage of this opportunity - this new york moment - and together shape a bright future for this great city. 2 / 2 bis - central bankers'speeches