: “ measure twice, cut once. ” by continuing our site, agree yet to our of ause and privacy statement. but youas canwe learn more about we use cookies by fast forward to touse today, andyou i have to terms pursue career in carpentry. prepare for ahow post - libor world, the same adage runs through my mind. we must take great care, because the decisions made today will determine reviewing our privacy statement. if the libor transition is ultimately successful. the past decade has shown us that the problem with using libor as a benchmark interest rate has been an extremely risky one to have — and to solve. 3 it's important that we focus not only on making the transition, but also on getting the transition right. we've learned how challenging and costly it is to move away from a widely used unsound reference rate. it's essential that we move forward in a way that ensures that we do not have to go through such a transition again in our lifetimes. i know i wouldn't wish that on anyone. a foundation for the future this adage has many applications, but it's especially important to keep in mind when laying a foundation — because the foundation is everything. back when i lived in california, we bought a victorian house built in the 1890s. the attraction of the house was that it had lots of rooms and spaces for the family to live. but, the existing foundation was crumbling and not even attached to the house. in a major earthquake, the house would have quickly toppled over. we had a new foundation installed, and my mother asked to see before and after pictures. i responded that one picture would do since all the work was done underground and out of sight. the difference was that this house would last another 100 years, while the old house would have lasted only until the next earthquake. i see the current juncture in the transition away from libor to a new reference rate regime in much the same way. we have seen the development of several reference rates that may meet various needs, including creditsensitive rates. 4 separately, the arrc just announced the indicators that it will consider in recommending a forward - looking secured overnight financing rate ( sofr ) term rate, which with continued market progress, it believes can be achieved relatively soon. 5 these are valuable steps in the transition to the new post - libor world — but in my house metaphor, these represent the

william c dudley : how goes the recovery? challenges for the nation, the region and the fed remarks by mr william c dudley, president and chief executive officer of the federal reserve bank of new york, at cornell university, ithaca, new york, 25 october 2010. * * * good morning. i am pleased to have this opportunity to speak to you as i travel through upstate new york to meet with various communities in the region. this afternoon i will focus on national and regional economic conditions and what the fed is doing about them – with particular attention to the housing sector and to conditions in upstate new york. as always, what i have to say reflects my own views and not necessarily those of the federal open market committee ( fomc ) or the federal reserve system. introduction to the new york fed as many of you know, this is my first chance to speak at cornell university since i became president of the new york fed. so, by way of introduction, let me start with a synopsis of what the new york fed is, what we do and what makes my job so interesting. the new york fed is part of the federal reserve system, america ’ s central bank, and was created by congress in 1913. with this act, congress delegated to the fed system its constitutional authority to manage the money supply – and designed it be decentralized, representative of all of america and independent of the political process. the fed system is comprised of the board of governors in washington, d. c. – a federal agency led by chairman ben bernanke – plus 12 autonomous reserve banks that span the country. for example, the district overseen by the new york fed includes all of new york, the 12 northern counties of new jersey ; fairfield county, connecticut ; puerto rico and the u. s. virgin islands. each reserve bank is autonomous, with its own charter and a board of directors drawn from its district, but overseen by the board of governors. the law that created the federal reserve made us independent so we can make decisions in the national interest free from political pressure. however, the fed is accountable to congress. congress has set an explicit objective for monetary policy : to pursue the highest level of employment consistent with price stability. this objective is often referred to as our “ dual mandate, ” because it combines two goals : high employment, and low and stable inflation. in order to promote these objectives, we also pay close attention to financial stability, because without financial stability, it is very