of uganda to enforce licensing requirements and good corporate governance practices, as well as to evaluate the efficacy of existing risk management frameworks of the supervised financial institutions. the bank of uganda shall continue to execute this mandate. as i conclude, i would like once again congratulate standard chartered bank to on unveiling this revolutionary digital initiative. thank you all for listening to me and wish you a great evening prof. emmanuel tumusiime - mutebile governor, bank of uganda

william c dudley : conducting monetary policy – rules, learning and risk management remarks by mr william c dudley, president and chief executive officer of the federal reserve bank of new york, at the c peter mccolough series on international economics, council on foreign relations, new york, 24 may 2012. * * * it is a great pleasure to have the opportunity to speak here today. my remarks will focus on how i think about monetary policy in today ’ s challenging economic environment. as part of this, i will discuss how simple policy rules might appropriately be used as a guide to decisionmaking. i do this not because policy rules play a dominant role in my own thinking, but because the use of these tools is widespread, with many framing their arguments this way. to start with the punch line, although i believe simple policy rules can provide useful input into the policymaking process, it would be unwise to rely on them mechanically. as always, what i have to say today reflects my own views and not necessarily those of the federal open market committee ( fomc ) or the federal reserve system. policy must strive to promote the dual mandate objectives of maximum employment and price stability given to the federal reserve by congress. i believe that this should be done in a transparent and systematic manner because this will help us to achieve our objectives. in particular, a well - articulated framework for policy that explains our goals and how we use our tools to promote these goals helps market participants, businesses, and workers to anticipate how the federal reserve will respond under different circumstances and plan accordingly. 1 this helps to anchor private sector expectations in ways that make it easier to achieve the dual mandate objectives. in contrast, if we acted in an unpredictable way, policy would be ineffective at anchoring expectations and this shortcoming would disrupt the transmission of the monetary policy impulse to the real economy. over the years, this logic has led the federal reserve to become increasingly transparent and systematic in its decisionmaking. 2 in january, the federal open market committee took another important step in this direction, endorsing a public statement of longer - run goals and monetary policy strategy. this document articulated a 2 percent inflation objective and committed the fomc to a “ balanced approach ” with respect to promoting the dual mandate objectives. for me, the key issue is how to interpret these principles and put them into practice. i interpret the strategy document as expressing a relatively straightforward proposition : the fed should seek the policy setting that generates the best achi