david dodge : economic outlook and recent developments in canada opening statement by mr david dodge, governor of the bank of canada, to the standing senate committee on banking, trade and commerce, ottawa, 6 december 2007. * * * good morning, mr. chairman and committee members. let me start by saying how much i have appreciated our semi - annual meetings with this committee over the past seven years. the discussions that paul and i have had with you have been very valuable for the bank of canada. i hope that you have found them equally useful and that these regular appearances will continue long after i have left the bank. today's meeting comes just a couple of hours after we published the latest edition of our financial system review. but it has been quite some time since we issued our october monetary policy report. nevertheless, i want to begin with the economic outlook as we saw it in october. i will then talk about developments since that time and our current assessment of the risks to the outlook. the bank's outlook from october is summarized in tables 1 to 3 of the monetary policy report. in october, we saw strong global economic growth continuing in 2008 and 2009, although we foresaw considerably weaker u. s. growth in 2008 than had previously been the case. the global outlook is summarized in table 1. in canada, we were looking for weaker economic growth in the fourth quarter of this year and the first half of 2008, but some strengthening thereafter. as you can see from table 2, we were expecting continued strong final domestic demand throughout the projection period, but considerably weaker net exports. this outlook reflected weaker u. s. growth and a stronger canadian dollar, which was assumed to average 98 cents u. s. over the projection period. inflation was expected to peak in the fourth quarter of this year before returning to the 2 per cent target around the middle of 2008, as you can see from table 3. against this background, we left the target for the overnight rate unchanged at 4 1 / 2 per cent on 16 october, and judged the risks to our outlook to be roughly balanced with perhaps a slight tilt to the downside. now, let me turn to developments since october. the canadian economy continues to operate above its production capacity. given the strength of domestic demand and weak productivity growth, there continue to be upside risks to the bank's inflation projection. however, other developments since october suggest that the downside risks to the bank's inflation projection have increased. difficulties in global

william c dudley : remarks at panel discussion on otc derivatives reform and broader financial reforms agenda remarks by mr william c dudley, president and chief executive officer of the federal reserve bank of new york, at the 2013 otc derivatives conference, paris, france, 12 september 2013. * * * it is a pleasure to be here. who wouldn ’ t want to be in paris – anytime – let alone in september? my comments today will focus on how over - the - counter ( otc ) derivatives reform fits in with the broader financial reform agenda and those aspects of the reform effort in otc derivatives that could potentially fall short relative to those broader objectives. my short answer, which i will elaborate on in my remarks, is that the otc derivatives reform effort fits in very well with the broader reform agenda, but there are significant risks that we will fall short in this arena relative to what we are likely to achieve elsewhere. as i see it, the g20 reform effort for otc derivatives has three broad goals : reduce systemic risk with respect to otc derivatives activities ; improve the ability to aggregate and analyze over - the - counter derivatives otcd risk exposures across markets, institutions and product classes ; and improve competition and protect against market abuse. systemic risk is being reduced in a number of different ways. first, mandating the standardization, whenever possible, and central clearing of otc derivative trades can reduce risk by transforming a complex web of bilateral firm exposures into a smaller set of net exposures between each dealer and the central counterparty ( ccp ). given their role in fostering financial stability, robust financial market infrastructures ( fmis ) that are properly risk - managed can serve as a source of strength in times of stress. central clearing can also reduce systemic risk by requiring collateral from the participants. to the extent that the otcd reform effort results in the greater use of collateral, that should also help make the system safer. second, increasing capital and liquidity requirements, improving governance, risk management, and resolution and recovery, as well as implementation of the principles for financial market infrastructures ( pfmis ) promulgated by the committee on payment and settlement systems ( cpss ) and the international organization of securities commissions ( iosco ) should make fmis more robust and resilient. fmis performed well during the financial crisis, but with otcd reform, we are asking fmis to do even more, so the bar needs to be higher. third, firm