of inflation expectations during the ongoing episode of high inflation. the news is mostly good — longer - run inflation expectations in the united states have remained remarkably stable at levels broadly consistent with the fomc ’ s longer - run goal. inflation uncertainty has increased, but this does not appear to be due to unmoored longer - run expectations. the one surprising wrinkle worth further study is the increasing divergence in views about future inflation, including the high share of those expecting deflation, and what this portends for the future. table and figures references armantier, olivier, fatima boumahdi, gizem kosar, jason somerville, giorgio topa, wilbert van der klaauw, and john c. williams. “ what do consumers think will happen to inflation?, ” federal reserve bank of new york liberty street economics, may 26, 2022. armantier, olivier, leo goldman, gizem kosar, giorgio topa, wilbert van der klaauw, and john c. williams, “ what are consumers ’ inflation expectations telling us today?, ” federal reserve bank of new york liberty street economics, february 14, 2022. by continuing to use our site, you agree to our terms of use and privacy statement. you can learn more about how we use cookies by reviewing our privacy statement. armantier, olivier, gizem kosar, jason somerville, giorgio topa, wilbert van der klaauw, and john c. williams. “ the curious case of the rise in deflation expectations, ” staff report 1037, october 2022. board of governors of the federal reserve system, statement on longer - run goals and monetary policy strategy, january 24, 2012. board of governors of the federal reserve system, 2020 statement on longer - run goals and monetary policy strategy, august 27, 2020. breach, tomas, stefania d ’ amico, and athanasios orphanides, “ the term structure and inflation uncertainty, ” journal of financial economics, volume 138, issue 2, november 2020, 388 - 414. coibion, olivier, francesco d ’ acunto, yuriy gorodnichenko, and michael weber, “ the subjective inflation expectations of households and firms : measurement, determinants, and implications, ” journal of economic perspectives, volume 36, number 3, summer 2022, 157 – 184. evans, george, and seppo hon

timothy f geithner : actions by the new york fed in response to liquidity pressures in financial markets testimony of mr timothy f geithner, president and chief executive officer of the federal reserve bank of new york, before the us senate committee on banking, housing and urban affairs, washington dc, 3 april 2008. the original speech, which contains three annexes, can be found on the federal reserve bank of new york ’ s website. * * * good morning, chairman dodd, ranking member shelby, and other members of the committee. thank you for giving me the opportunity to appear before you today. i am here to outline the actions by the federal reserve bank of new york in response to present challenges in financial markets, including those in relation to the proposed merger of bear stearns and jpmorgan chase. on the evening of thursday, march 13, 2008, i took part in a conference call with representatives from the securities and exchange commission, the board of governors of the federal reserve and the treasury department. on that call, the sec staff informed us that bear stearns ’ funding resources were inadequate to meet its obligations and that the firm had concluded that it would have to file for bankruptcy protection the next morning. the sec said it concurred in that judgment, and it would spend the evening discussing with bear what kind of bankruptcy filing was appropriate. the conference call that evening took place against the backdrop of an extraordinarily challenging period in the u. s. financial system. this context was critical to the decisions we made over the next several days. and i think it ’ s important to start with an explanation of the broad risks to the economy posed by the crisis now working through the financial system. the intensity of the crisis we now face in u. s. and global financial markets is a function of the size and character of the financial boom that preceded it. this was a period of rapid financial innovation – particularly in credit risk transfer instruments such as credit derivatives and securitized and structured products. there was considerable growth in leverage, greater reliance on ratings on structured credit products and a marked deterioration in underwriting standards. the innovation in financial products was accompanied by a dramatic increase in the amount of financial intermediation occurring outside the core banking system. the importance of securities broker - dealers, hedge funds, and mutual funds in the financial system rose steadily. off - balance - sheet vehicles of various forms proliferated, and increased concentrations of longer - dated assets were held in